Best Home Loans

The best home loans are offered by reputable lenders and have several characteristics in common:

• The interest rate should be in line with the 10 year treasury bond at the time of the loan. (Note: Interest rates may change daily...but they usually don't leap in either direction over a brief period of time)

• Fixed rate loans offer the security of knowing what your monthly payment will be. Many of the Adjustable Rate Mortgages offered over the past several years have "adjusted" and forced numerous homeowners into foreclosure.

• A 30 year loan as opposed to a 15 year loan, will cost you less per month for your mortgage payment. Although you will pay more total interest with a longer loan, you have the option of paying ahead at any time - most loans have no prepayment penalty.

• Competition is healthy. Check out local bank rates (see a loan officer), mortgage brokers (who have the option of "shopping around" for the best deal), and online lenders who can help you compare prices to find a cheap mortgage loan. Let them fight for your business!

• Ask your friends and real estate contacts who they recommend. Believe me, if they have a horror story, they'll be more than happy to bend your ear! On the other hand, if they were pleased, they will be sure to share that with you.

• Check your credit score before applying for a loan. The score only costs a few dollars. You can get a free credit report at www.annualcreditreport.com You can look to see if there is any misinformation and correct it before you put in an application anywhere. Higher score = Lower rate of interest!

• Government programs, such as FHA loans, may be available to you . Look into anything you may qualify for.

Knowledge is power.
The best home loan is one you have researched and one you can understand.
All the best to you!

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