A few weeks ago, I wrote about tips for mortgage shopping, but since then, InvestmentZen has published a monster guide to mortgages that’s worth a read if home shopping is in your future. Here’s a few words from Tiffany of InvestmentZen:
Purchasing a home is a major financial decision. For a lot of us, it may be the biggest single financial decision we make during our lifetime. Given its importance – it’s surprising how many of us actually have a very poor understanding of the finances behind a real estate transaction, especially when it comes to getting a mortgage.
Securing a mortgage can be a complicated, as there are many different parties involved in the process along with industry jargon, but it is essential to understand because it can mean saving thousands of dollars over time. Failure to understand your mortgage and its potential effect on your finances could not only result in lost money that could be saved for retirement or other financial goals, but as many discovered during the great recession – it could mean losing your house.
The terms of a mortgage are very important for a home-buyer to understand. The difference in terms could mean thousands of dollars paid over the lifetime of the loan, which usually run for 30 years. There are many different types of loans, each of which have varying rates. These different types are also essential to understand in order to ensure that a homebuyer receives the best rate possible.
While it can be confusing, here is an easy-to-understand guide that walks through the steps of getting a mortgage in four chapters. The chapters cover a basic understanding of mortgages, the types of loans available, what factors affect a mortgage rate, and the application process. Though reading about mortgages isn’t exactly exciting, if you’re thinking of buying a house, this guide does a great job of breaking down everything you need to think about when applying for a mortgage.