Real Estate Search Direct

When you are shopping for a loan it is important to know how much the loan will cost overall.  That is where a Loan Amortization Calculator comes in handy.  Have you ever used a loan amortization calculator?

Homer Buyer was looking for a mortgage when he found that there were several different options available.  He thought  a loan was a loan so he didn’t know he would have so many choices. 

One lender offered him an Adjustable Rate Mortgage and another offered a 30 year fixed.  Homer had a hard time getting a handle on the differences between the loans. 

He knew that it was important to understand his mortgage.  Do you know how he knew this?

He saw the evidence of so many people who didn’t understand and were now losing their homes because of it.

Homer found an online loan amortization calculator at Real Estate Search Direct.  With this calculator he was able to see various payment options and the amount of interest and principal for each payment. 

Understanding all the terms and conditions of a mortgage is an important part of most home purchases (unless you are paying cash.)  Don’t be caught by surprise when your loan payment increases.

Here are some things to be aware of when looking for a mortgage in the current market:

• Loans advertised as interest only are often adjustable rate mortgages which can lead to higher mortgage payments when the index adjusts.
• FHA loans allow the lowest down payment available of 3.5% unless you qualify for a VA or USDA loan.
• VA loans are for eligible military veterans only.
• USDA loans are for working farms/ranches only.
• PMI may be required on loans with less than 20% down payment.
• No documentation/low documentation loans are not generally available anymore.

Always be sure to read the entire mortgage agreement and get an explanation for any sections you don’t understand. 

For more tips on home buying get updates from Real Estate Search Direct.  You will get a six part email course on home buying as well as tips and news about the current housing market.

Allen Davis
RealEstateSearchDirect.com