Remember to Shop, Compare, and Negotiate for Mortgage
Quotes!
When
buying a home, remember to shop around for the best
mortgage quote available, comparing costs and terms, and
negotiating for the best deal.
Your local newspaper and the Internet
are good places to start gathering mortgage quote
information.
You can usually find information both
on interest rates and on points for several lenders.
Since rates and points can change daily, you’ll want to
check your newspaper often when shopping for a home loan. But
the newspaper does not list the fees, so be sure to ask the
lenders about them.
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Mortgage Insurance Quote
and the Need for Mortgage
Insurance
Though there are many
options for mortgage insurance
quotes, it is often unnecessary
to purchase special mortgage
insurance.
When you buy a new house,
you may want insurance that
provides enough money to pay
off your mortgage if you or
your spouse should die. One
option for this type of
coverage is mortgage insurance,
and many mortgage insurance
quotes are available.
Another option, outside of
getting a mortgage insurance
quote, is to get plain, old
term life insurance, which can
provide coverage in case of
death. There are several
benefits to simple term life
insurance. It is usually
cheaper than the mortgage
insurance quotes available. It
is also portable, and not tied
to one house. In other words,
when you move you can take the
term life insurance with you to
your next dwelling, offering
uninterrupted coverage.
Also, unlike the mortgage
insurance quotes available,
term life insurance usually
gives greater coverage than you
would need to pay off your
mortgage, so your family will
gain more than through a
mortgage insurance policy.
The letters you get from
your mortgage lender may make
mortgage insurance seem like a
requirement, but that is not
always the case. Be sure to
carefully read the terms of
your mortgage loan, and also to
shop around for mortgage
insurance quotes if it is a
requirement to get your
mortgage loan.
One good reason to get a
mortgage insurance quote is if
you have a physical ailment.
Some term life insurance
requires a physical exam, and
any illnesses or problems will
push up the cost of your term
life insurance policy or make
it impossible to get a policy
at all. Mortgage insurance, on
the other hand, can be obtained
with no physical exam, so you
can get a good mortgage
insurance quote no matter
what.
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In addition to the legwork you need to put in to
gathering mortgage quotes, you should remember that the Equal
Credit Opportunity Act prohibits lenders from discriminating
against credit applicants in any aspect of a credit transaction
on the basis of race, color, religion, national origin, sex,
marital status, age, whether all or part of the applicant’s
income comes from a public assistance program, or whether the
applicant has in good faith exercised a right under the
Consumer Credit Protection Act. Therefore, you should always be
able to get a mortgage quote and not be discriminated against
on the basis of these characteristics.
Don’t assume that minor credit problems or difficulties
stemming from unique circumstances, such as illness or
temporary loss of income, will limit your loan choices to only
high-cost lenders when you begin gathering mortgage quotes. If
your credit report contains negative information that is
accurate, but there are good reasons for trusting you to repay
a loan, be sure to explain your situation to the lender or
broker, which should give you more favorable mortgage
quotes.
If your credit problems cannot be explained, you will
probably have to pay more than borrowers who have good credit
histories. But don’t assume that the only way to get credit is
to pay a high price. When you get a mortgage quote, ask how
your past credit history affects the price of your loan and
what you would need to do to get a better price. Take the time
to shop around and negotiate the best deal that you can.
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