I've seen a lot of advertising, either TV, radio or print about "teaser rates". For instance, I have seen a national company I believe it's DiTech.com advertising a $150,000 mortgage for $450.00 a month. How do they do this? Well the answer is simple, there are products out there that allow the homeowner to only pay a fraction of their interest. I do not and will not recommend this product to my clients. Why? Because in this case their (homeowner) balance will actually go up over time. Using the example above at a 4.5% interest rate the interest only payment is $558.37, what does this mean? First, your balance is going up significantly over time. Secondly, you are not going to get 4.5% rate in the market today!
Especially in today's housing environment where appreciation is slim to none, foreclosures are at an all-time high and overall mortgage delinquency is on the rise these types of loans simply do not make a whole lot of sense. I have outlined the following to make sure you get a quality mortgage product.
1) Ask and compare GFE (Good Faith Estimate): A GFE can be "sugar coated" any way you want it. Make sure the GFE will portray actual costs that you will see at closing.
2) Ask for references and testimonials: If you are with a reputable company and individual this should not be a problem and if it is you probably should not do business with them regardless of what they promise.
3) Disclosures: Make sure they go over ALL disclosures with you. To many times items are either not disclosed or forgotten about and this only hurts your understanding of the mortgage process, product and terms.
4) Trust and referrals: Do business with someone that you trust! For instance, Professional Mortgage Group's business is 100% referral. Realtors, builders, title agencies, inspectors and past clients continually feed our business on a daily basis. Why? Because this network of individuals trusts us to deliver a high quality mortgage experience and we have continually done this day in and day out, week after week, and month after month.
With these techniques as your guide you should be in fine shape to receive a quality mortgage product and experience!
Your Comments are Welcomed!
Brought to you by Professional Mortgage Group, Inc.
Your Columbia, Missouri Mortgage Broker
Especially in today's housing environment where appreciation is slim to none, foreclosures are at an all-time high and overall mortgage delinquency is on the rise these types of loans simply do not make a whole lot of sense. I have outlined the following to make sure you get a quality mortgage product.
1) Ask and compare GFE (Good Faith Estimate): A GFE can be "sugar coated" any way you want it. Make sure the GFE will portray actual costs that you will see at closing.
2) Ask for references and testimonials: If you are with a reputable company and individual this should not be a problem and if it is you probably should not do business with them regardless of what they promise.
3) Disclosures: Make sure they go over ALL disclosures with you. To many times items are either not disclosed or forgotten about and this only hurts your understanding of the mortgage process, product and terms.
4) Trust and referrals: Do business with someone that you trust! For instance, Professional Mortgage Group's business is 100% referral. Realtors, builders, title agencies, inspectors and past clients continually feed our business on a daily basis. Why? Because this network of individuals trusts us to deliver a high quality mortgage experience and we have continually done this day in and day out, week after week, and month after month.
With these techniques as your guide you should be in fine shape to receive a quality mortgage product and experience!
Your Comments are Welcomed!
Brought to you by Professional Mortgage Group, Inc.
Your Columbia, Missouri Mortgage Broker
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