Here is all you need to know to avoid mistakes. A 15 year mortgage comes with a lower interest rate because there is less risk to the lender. This is also true if your lender will be adjusting your interest rate soon. If you are unable to close prior to this lock period expiring, for whatever reason, the lender can change the interest rate.



Documentation is one aspect of the loan that could delay your closing. Accepting a loan with this penalty could cost you as much as six months worth of interest on 85% of the original loan balance if you refinance or sell your home. This interest rate markup in exchange for no closing costs will easily double or triple the expense over the lifetime of the mortgage.

Make sure the information you are providing is accurate; do no overestimate your income or assets. If you currently have an adjustable rate mortgage you may be concerned about rising interest rates; refinancing to a fixed rate mortgage will guarantee rising interest rates won’t wreck your budget. Before you sign a mortgage contract you need to read the entire document and pay attention to several key elements. There are of course other reasons to refinance, even if you cannot get a rate that is better than two points. To get your free mortgage guidebook visit RefiAdvisor.com using the links below.

Download a free mortgage guidebook to help you avoid common mortgage mistakes. Mortgages can be the most intimidating aspect of home ownership. Once you know exactly what you can afford you are ready to shop for a lender. If they request information make sure the websites use secure connections. If you stay with the mortgage for more than six years, this loan will cost you more than paying the closing costs up front.

Ask your mortgage lender to lock in the interest rate quoted to you. You can tell if a website is secure by looking for the padlock in the lower right corner of your browser window. Selecting a fixed rate mortgage will protect you from the economy. Interest rate hikes will not affect your monthly payment amount.

Mortgage interest rates may be at their highest levels of the last four years; however, it is not too late to find good mortgage deals. This could be due to a temporary loss of part or all of your income due to illness or loss of employment. When shopping for a mortgage online always request no obligations quotes. Prepayment penalties serve to boost the lender’s income if you refinance or sell your home.