Those working within the mortgage industry typically take it for granted that their customers know enough about mortgages that they can make an informed decision. They become so familiar with the process that they simple forget that consumers may not be as aware as they are. This is no different whether you are dealing with Sun Mortgage Funding in Meraux LA, or some other mortgage lender.
For this reason, if you are trying to obtain a loan to finance a home, you should ask your mortgage loan company to help you understand what it available to you. Even those who write articles regarding this industry are apt to gloss over this information because they feel it is such basic that everyone should already know. It is vital that you understand about the pros and cons of the various mortgage types so that you can get the one that is right for you, so here are some things you should know.
Right now, it is possible go get a mortgage refinance or regular mortgage for less than 5 percent interest. It is typical to see rates below 5 percent today with FHA mortgages, and buyers are only expected to pay 3.5 percent down when they meet the income and credit requirements. There are even some instances where the lending institution may not require any money down at all.
What Is APR?
One-third of the people surveyed recently said they did not know what the term “annual percentage rate” meant. In spite of the fact that the APR plays a major role in what a mortgage will cost them, many people just do not know what it is. Simply put, the APR is the rate of interest that must be paid on the mortgage loan. In effect, it is the money the mortgage lender will make on the money they lend you. For instance, if you take out a mortgage with a 4 percent interest rate, technically, you will be paying 4.38 percent if you were also financing the fees included in obtaining a mortgage.
Another interesting fact that some consumers were misinformed about is the thought that all lenders charge the same fees. The truth is that each lender sets their own handling fees, and unless you understand this it can cost quite a bit if you choose a lender with higher rates.