What The Bank is Not Telling Your About Your Mortgage

When I first decided to refinance my California home, I thought I would learn everything there was to know about refinancing my mortgage. I signed up for a free mortgage guide that said it all. And, to be honest, I think I figured out a few things. But after doing just a little more digging, I learned the bank is not telling you about your mortgage options. In this article I will show you what the bank is not telling you about your mortgage.

The first thing the bank will not tell you about your mortgage is your credit score. If you qualify for a mortgage, your credit score is the biggest factor determining how much you pay. So, one of the biggest factors determining your mortgage is how good or bad your credit is. This is why they will check your credit before giving you a loan. Your current financial situation and your potential income are factors they consider before giving you a mortgage.

Another factor determining your mortgage is your interest rate. Banks set a base rate for their mortgages. Sometimes they raise their base rate by a few points to make up for bad investments or to offset high mortgage expenses. But, they never increase it to the point where you cannot afford to pay your mortgage. So, make sure to check with your current lender, too.

In California, as in most states, there is a “permitted loan rate.” This is the rate your bank charges on a mortgage. But, don’t be confused with a markup. A markup is when the bank increases your mortgage interest rate to make up for the higher loan cost.

But, never sign up for a bank loan that has a markup. If you do, you’ll pay in high fees and overpayments later. You’ll also find yourself paying a lot more for your home when the real estate market turns around and prices go back down.

One thing the bank will not tell you about your mortgage is prepayment penalties. These penalties kick in if you are late on your mortgage. Sometimes you can be hit with a penalty for even a minute of lateness. Most borrowers are hit with a penalty for any time they are two weeks behind on their mortgage. You won’t learn what the bank is not telling you about your mortgage until it’s too late to do anything about it.

One more thing, the bank is not telling you about your mortgage is balloon payments. This means that when you get to your final payment amount, there will be a balloon payment made that leaves you with a large amount of money to pay off. While the payment looks good, most people find themselves unable to make the full payment and then have to scramble to come up with the rest of the money to make the mortgage payment. Many people end up losing their homes.

To learn more about what the bank is not telling you about your mortgage, contact a mortgage lender or broker who has experience working with homeowners. They can explain in layman’s terms what the bank will not tell you. Then you can decide for yourself if you want to risk your home by going through with the loan. If you are careful and do your homework, you can save your home from foreclosure by learning what the bank is not telling you about your mortgage.

Home mortgages are a great investment, but only if you understand what they are covering when you sign the papers. Be aware that if you cannot make your monthly mortgage payment, the lender may start foreclosure proceedings. You don’t want this to happen. A good mortgage lender will let you know if you qualify for the loan.

When the bank tells you what the bank is not telling you about your mortgage there may be a reason. The bank may think it is a better short sale price for your home. The truth is that they will always find a reason to charge you a higher price for the house than they would if it was sold to someone else. Banks are very interested in profits, and they will do everything possible to capture those profits.

To avoid what the bank is not telling you about your mortgage, act now. Take a look at your mortgage. Are there areas that you can refinance? There are a lot of great mortgage lenders online that would love to help you. Find one that offers you a great interest rate and you will be well on your way to owning your dream home.