Buying your first home is a milestone many people look forward to in their lives. Getting a mortgage is a major part of that. As a result, some first-time buyers are taken advantage of and trapped with a costly mortgage. To help you escape the same pitfall, make sure you read before you sign.
What You Should Avoid When Getting a Mortgage: Higher-Than-Average Interest Rates
Often, when a deal looks too good to be true, it comes down to the interest rate. Your mortgage might look great upfront, but over time, you will end up paying exponentially more than what is average for your area. There are a few ways that you can lower your interest rate. You can improve your credit score or spend more on the down payment for the home. You can also choose a different type of mortgage loan or a fixed interest rate. If you are already a homeowner and you would like to get a better interest rate, it might be a good idea to refinance your home.
Aside from interest rates, be sure to read the fine print for any hidden penalties. Your mortgage might list a prepayment penalty, which you will pay if you finish paying the balance early. Most mortgages have prepayment penalties, but predatory loans have especially high penalties. These predatory loans take advantage of young homebuyers by adding on hidden fees or penalties. This could include large late fees and the lender gives the borrowers plans they cannot afford to pay back. The interest rate for the fees is also high above the recommended standard.
What You Should Avoid When Getting a Mortgage: Settling Early
Even if your mortgage lender is offering you a deal with moderate interest rates and low penalties, you should never sign the first mortgage you see. Every loan you are offered will differ on rates and payment periods, so you want to shop for a mortgage that is the best fit for you, your income, and your life plans. You are also able to get more competitive rates when lenders know that you are willing to take your business elsewhere. Terms are negotiable and by shopping around, you will have a better idea of what you can get.
At the end of the day, remember that you make the final decision on which lender you take a mortgage out with, and because of that, you should be the one with the power. Do not give in to pressure from the lenders and go with the plan that you feel is the most reasonable.
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See you at a meeting soon!
The Southwest Florida Real Estate Investment Association is the leading source of SWFL real estate investing events that provide investment education and networking in southwest Florida. We analyze the housing market and foreclosures and provide information, education and networking events in order to build a network and knowledge base for investors and potential investors. Our members include real estate agent, brokers, investors, hedge fund managers, rehabbers, wholesalers and more.
Our SWFL REIA General Meeting is held in Fort Myers where we provide education on hot topics in investing and an opportunity to enjoy the camaraderie of your fellow investors. You’ll get a chance to ask for advice from successful real estate professionals and even make a few deals on your latest projects.
To become a member, anyone can register as an individual, a couple, or a corporation. Being a member opens the doors for endless networking opportunities, advice from members with decades of experience, new ideas from entrepreneurs, camaraderie with those just beginning, and deals and contracts done in the meeting room. For those interested in Cape Coral rental property investment and/or Fort Myers rental property investment, SWFL REIA will be able to provide a network to help launch a successful investment career.
The SWFL REIA is known and respected as a source of current, actionable and useful information about the housing market in the area that we meet.
We meet twice a month.
One of the premier sources for real estate investing networking and education is the SWFL REIA. In the real estate world, the SWFL REIA is different in that they do not do information product sales. Their meetings are focusing on the best ways of investing in real estate by collaborating with other property investors who are sharing their experiences.
We look forward to meeting you at a meeting soon!
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