first-time home buyers might find it hard to understand how their mortgage works
NEW YORK (PRWEB) March 21, 2019
Taking out a mortgage is one of the biggest decisions any American family will undertake that is why National Debt Relief shares some of the most common facts about it. The article titled “Improve Your Mortgage IQ By Learning These 8 Important Facts” released February 27, 2019, helps mortgage loan holders understand their payments better.
The article shares that a lot of first-time home buyers might find it hard to understand how their mortgage works. This is because the mortgage industry seems to have its own set of jargons, terms, and facts that could confuse first-time homeowners. It is important that they understand these terms in order to manage their mortgage loan better.
The article starts off by reminding homeowners what PMUI stands for. It means Private Mortgage Insurance but it is not meant to protect the homeowner but the lender. This is applied in conventional mortgages when the downpayment on the house is less than 20%. This assures the lender that they will be paid in the event that the homeowner is unable to meet the payments.
The article also shares that homeowners can refinance their loan at any time they want. They might have a change in their finances or even find that the interest rates have gone down. They need to take note though mortgage refinancing carries a lot of closing costs and fees so they need to weight that with the potential savings they get from paying lower interest rates.
The article also explains what an adjustable and fixed rate mortgage does and the benefits of each. The Adjustable Rate Mortgage gives a homeowner a fixed rate for the first few years of the loan. After that, the rate changes depending on market conditions. On the other hand, the Fixed Rate Mortgage gives consumers the same rate throughout the life of the loan.
To read the full article, click https://www.nationaldebtrelief.com/improve-mortgage-8-important-facts/