how to choose a mortgage loan

Important Things To Consider Before Choosing a Mortgage Loan

Feb 25, 2017 (0) comment

A mortgage loan helps fulfill your aspiration of buying the house of your dreams. Of course, buyers are vying to get approved for a loan which is tailored for their unique needs. In today’s era, there are various types of home loan programs available, which leaves you with plethora of options to think about.

We give you a list of important parameters that you should gauge before making the decision.

1) Study the Types of Loans

A little homework won’t hurt, even if you have an expert at your disposal. Talk to other buyers who have availed loans and study their choices. Calculate your finances and assess your ability to borrow the amount. This will be helpful in choosing a loan program that will justify your needs.

2) Monthly Payment

Choosing the EMI that is comfortable for you is of utmost importance. You need to assess your future liabilities along with the existing ones to zero in on an amount that you will be all right with paying.

3) Tenure of the Loan

The Term of the loan impacts your monthly payments. If you’re not comfortable paying a high EMI, opt for a higher tenure. However, if you have higher liquidity at your disposal, go for a lower tenure. Just remember that a high tenure will create lower equity in your house.

4) Lock-in-period

Mortgage rates are of two types: floating and fixed. In case you’re okay to bear the risk of a fluctuating market, opt for a floating rate. However, if you think that risk is not your cup of tea, you can insure yourself by opting for a fixed rate.

5) Additional & closing costs

Additional legal costs such as processing fees are involved in every type of loan. Hence, remember to read the provisions and terms carefully before signing up for any type of loan.

Picking up the right type of mortgage loan to match your needs is no cakewalk, which is why hiring the services of a mortgage professional is so essential. Getting a competitive deal is crucial. As one of the best Boston mortgage lenders, Drew Mortgage can help you with your loan shopping to ensure a hassle-free experience.

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