the state where they conduct their appraisals.
VALUE OF PREPAYING YOUR MORTGAGE
It’s a great idea to prepay your mortgage if you can. By doing so, you can reduce the costs incurred, together with interest, and save thousands of dollars in the long term. Prepaying the mortgage means that you pay the amount you owe to the lender before the due date. To do so, it’s important to understand some of the most popular methods of doing this. Some people decide to pay a monthly sum above the mortgage payment. This amount gets applied to the principal (not the interest), and doing so consistently can save you a small fortune in the long run. Another way of reducing interest is through a system of making 13 payments in a year instead of 12. This is part of shopping for a mortgage. Some mortgages have a flexible policy, which allows you to make extra payments as you consider fit and without restrictions. In other cases, however, the terms of overpaying a loan are strict and require a penalty for those who are planning on prepaying the mortgage. These terms are detailed in the prepayment penalty disclosure section of the documents. Be sure to examine the documents carefully when you decide on a loan.
THINGS THAT CAN DISRUPT YOUR DEAL
Until the closing statement is signed by both you and the seller, nothing is certain. The deal might fall apart from one day to the next. Here’s a list of common mistakes that may seem insignificant to the buyer at first glance but may be deal-breakers for the lender.
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