When you are looking into getting a mortgage, one of the main things to worry about is how much that mortgage will cost you each month. That is a logical thing to be concerned with; however, there are a few other questions you should be asking your lender as well. Here in Fort Lauderdale, our friendly and professional staff at DDTMM can help you get a mortgage quote as well as answer some of the following questions too!
What Mortgage Rates are You Currently Offering?
Another question commonly asked in conjunction with this is, how will my mortgage rate affect my house payment? This question is particularly important because the interest rate not only affects your bottom line but can also have a significant impact on your number one concern, the monthly payment. The interest rate offered to borrowers varies depending on a few different things. - The Lender • Each lender has its own mortgage rate to offer
- The Borrower • Interest rates fluctuate based on your creditworthiness
- The Economy • Interest rates are constantly changing
At DDTMM, Dan provides some of the best mortgage rates in Fort Lauderdale. Be sure to speak with us regarding the interest rate we can offer you and discuss a mortgage quote with us today.
Are Your Rates Offered with Optional Points?
Some lenders offer a points option when they give out their mortgage rates. You will want to talk to the lender of your choosing about their mortgage quotes and if the system they use allows for point purchasing.
Point purchasing explained: - Some lenders enable you to pay a fee toward “points” which help lower the interest rate on your home loan. They typically equate a certain number of points to a percentage of your home’s value. These programs are generally beneficial to those borrowers who are looking to stay in their houses long term. The points costs are usually included in your closing costs and required to be paid upfront.
What Are Your Fixed and Adjustable Rate Options?
No two mortgages are going to be identical. This is primarily due to the fluctuation of lenders and borrowers credit scores, but you can also attribute some of the differences to the fact that there are multiple home loan programs available and each one is customizable. Loan lengths can vary as well as the type of rate the mortgage has.
Most mortgages have two types of rates.
1. Fixed Rates Another common question regarding this kind of rate is, will my fixed rate mortgage payment change over time? Essentially, a fixed rate means that your mortgage rate is locked from the moment you sign your contract until you make the last payment on the home. This allows you to predict your interest, and calculate the total cost of your home. Fixed rates are often chosen by people who plan to stay in their homes long term and by people who need the steady reliability of a more constant amount for their monthly housing costs.
2. Adjustable Rate Mortgages: When you have an adjustable rate, you typically start with a period of fixed interest followed by fluctuations in the amount of interest that you pay. This type of mortgage rate is usually selected by homeowners that are not planning to be in the new house for more than five years.
Dan can discuss both options with you and help you make an educated decision on which type of mortgage rate will work best for your plans.
Will My Home Loan Include Private Mortgage Insurance?
As stated above, each mortgage loan is different and unique to the situation. If you are getting a typical house mortgage and you plan to pay less than 20% down, you can expect that your lender will charge you private mortgage insurance or PMI; however, some mortgage programs such as the VA loan option do not allow a lender to charge PMI. There is good news though if you find you will be paying PMI on your mortgage, generally your lender will drop those fees after you have paid off 20 percent of your home’s value.
Are There Any Other Fees Associated with Getting a Mortgage?
This question is one you will want to ask when shopping for a lender. Every financial institution has its own regulations and mortgage rates to offer; likewise, each lender charges different fees. Some common expenses associated with mortgages include:
Point Related Fees
Get All Your Mortgage Questions Answered Today
Here at DDTMM, we have a friendly, professional, and knowledgeable mortgage team. We would love to answer any of the above questions as well as address any other concerns you might have regarding getting a home loan. Our office has the best Fort Lauderdale mortgage rates, and we are ready to get you set up with a mortgage quote as well as a financial consultation to assess your home loan needs today.