Find the best mortgage for your budget
There can be no denying the fact that even a slight increase in interest rate can make your mortgage costly for you. If you are buying a home, paying attention to interest rate being offered by your lender makes all the difference between a bargain deal and a costly mortgage. After all, you are committing to repay EMI’s to your lender for a long time to come.
Many first-time homebuyers start their house hunt without approaching a lender for a preapproval. They must hurry for mortgage once they have finalized a home as they have little time left to shop around and secure a bargain deal for their mortgage. These buyers often rue their decision later as they find that they have received a rate higher than what they would have got had they approached several lenders.
There are also homebuyers who jump on to the first offer of mortgage they get from a lender. These individuals never bother to shop and compare the features of different mortgage products available in the market. They continue with the mortgage for a long time as they know how daunting it is to go for a refinance because of all the legal formalities and the paperwork.
Of course, it can be a tiring exercise trying to know the mortgage rates offered by different lenders. But if you put in some time and effort, you can save a lot of your hard-earned money by securing a better rate of interest and other terms that are in your favor. You need to realize that lots of money is at stake when buying a home. By not approaching several lenders, you are only causing a lot of harm to your own financial interest.
When buying a home, it should be your sole aim to secure a mortgage at the lowest possible rate of interest. You need to make your best efforts as it will be you who will be repaying the money month after month for a long period of 25-30 years. As interest rates fluctuate daily, it is only by shopping around that you can get the best possible mortgage deal for yourself.
A difference of just a fraction of a percentage point can add thousands of dollars to the amount you owe to your lender. You may not pay attention if the EMI quoted by a lender is $10-15 more than the EMI quoted by another lender. But if you add up this difference over a period of 30 years, you see that you end up paying lot more money to your lender than you really should.
You can use this handy tool to calculate your mortgage payment.