There are a lot of mortgage options available in the market. It is very difficult for buyers to choose among them. All the mortgage options are not created equal, but there are a few things that you may want to know before you really pick
1) Introductory teaser rates
- Although introductory rates may seem really attractive, be sure to do your own homework with a mortgage calculator. Often they raise to a higher level later in your term and make you pay more in the long run.
2) Prepayment restrictions and penalties
Many mortgagors don't allow you to pay any more than your required monthly payment, while some mortgage plans allow that to be flexible. For example, you can increase your monthly payments by a certain amount each year, on any regularly scheduled payment date with NO penalty.
3) Hidden fees
- Be sure to ask if you are going to be charged any mortgage application, transfer or processing fees.
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