in dealing with a reputable company and knowing all the details.
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. To prepay the mortgage means that you pay the amount you owe to the lender before the due term. To do so, it’s important to understand some of the most popular methods of doing this. Some people pay a monthly sum above the mortgage payment. This amount gets applied toward 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 see fit and without restrictions. In other cases, however, the terms of overpaying a loan are strict and may assess a penalty. These terms are detailed in the prepayment penalty disclosure section of the loan documents. Be sure to examine the documents carefully.
THINGS THAT CAN DISRUPT YOUR TRANSACTION
Until the closing statement is signed by both the buyer and the seller, nothing is certain. Some common mistakes that may seem insignificant for the buyer at first glance, can mean a "yes" or "no" for the lender. Even though you want to be prepared and buy everything you need before moving day, please resist this urge to shop until after the closing. Now is the time to save money, not spend.
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