Whether you are a new home buyer or looking to refinance a loan that you are already locked into, consumers agree that mortgage and loan terminology can often be confusing and sometimes overwhelming. Along with having to shop for a lender, consumers also have to shop and compare the total cost of the loan, including the interest rate, fees, points, prepayment penalties, the loan term and more. When making one of the most important financial decisions of your life, knowledge is power.

Below are a few mortgage terms and term details to know before locking into a loan.

Points
Points are a type of fee issued by the lender as an alternative to charging higher interest rates on the loan. One point is equal to one percent of the loan principal (the actual amount of your loan). If you opt to finance your home at a lower interest rate, the discount points are paid at the time of closing. Consumers expecting to live in their home for 10 years or longer may find that paying points for a lower interest rate will pay off over time, whereas consumers who only plan to live in their home for 5 to 7 years may find a loan with a higher interest rate and fewer points the better option. Contact Equity Link Mortgage Inc. today to discuss different loan options, including no-cost loans, depending on the future plans for your new home.

Closing Costs
Processing a mortgage application can be time consuming and costly. Typically this process takes anywhere from one to three weeks. Avoid any mortgage closing surprises by reviewing your credit history before applying for your loan.

Once you've shopped, compared and chosen your lender, expect to accrue lender fees. Closing costs, which may consist of title insurance costs, appraisal fees, county recording fee, closing agent fees, and more, can add thousands of dollars to your borrowing costs. When shopping for your lender, be sure to ask Equity Link Mortgage Inc. to provide you with a good faith estimates (GFE) of ALL the  closing costs and fees. Though lenders aren't required to provide a GFE of settlement charges before the borrower applies for the loan, federal law does require them to provide it three days after. Work closely with Bernie Saul and take the time to scrutinize each estimate and define each closing cost fee so that you can make an informed decision. We can even provide you with a quote for a no-cost loan.

The Loan Term
When shopping for a mortgage program that will fit your current and anticipated finances it is important to understand the number of years your loan is likely to be active. Typically, mortgages with shorter terms carry higher monthly payments, while mortgages with longer terms spread payments out over the long life of the loan. Consumers who can afford the high monthly payments of a short term loan can save thousands in interest over the life of the loan. One of the best bargains in mortgage products is the 15 year loan. 

Keeping You Informed...
As a valued client, it is important to me to maintain our relationship. I am dedicated to keeping you informed of the latest market trends and mortgage options. Visit us online at http://equitylinkmortgage.net, or call me at 303.933.1466 to answer any questions that you might have..