Mortgage loans are typically used to purchase a house or to take money against the value of an existing home that you already own. There are seven key things to watch for when shopping for a mortgage, however. The amount of the loan, the interest rate, the lender’s terms and conditions, how much the monthly payment will be, how much in total you’ll pay over the life of the mortgage, and if there are any prepayment penalties. Here are your answers to all of those questions.Have a look at see additional tips for more info on this.
What is the amount of the mortgage loan? Mortgage loans are measured in percent of the house value; the bigger the loan, the bigger the monthly payment. The term loan is one type of mortgage where you pay only the interest on the loan for a pre-specified term, such as thirty years or fifteen years.
How much does the monthly payment go up as the interest rate rises? Most mortgage loans are set at a specific interest rate for the entire term. With these terms in mind, how much does your monthly payment go up if the interest rates increase from their current levels? Also, how much do you borrow and how long do you borrow it for?