Best Secured Homeowner Loans

With low rates and low prices many people who still have the means are looking to buy a home and get a mortgage. If you are one of those that can qualify for a loan there are some really great deals out there. Here are a few ways to maximize that great deal.

The first thing you want to look for in the best secured homeowner loans is a fixed rate. Too many people got in trouble with adjustable loans in recent times. Many people got into these adjustable rate mortgages either not knowing that they were going to go up, or assuming that they could refinance before they did. The problem was the economy went bad and there were no more mortgages to be had and people couldn’t afford the payment based on the new rate. It’s best to look for a fixed rate for the entire length of the loan. Even if you have to pay a little higher rate it’s better to know what you have then to get burned by surprises later.

Another thing to look at is the length of your new mortgage. Many people assume that the only option is a 30 year mortgage. This is not the case, just like even the cheapest unsecured loans,  you can get a mortgage for any number of years that a lender will qualify you for. 15 and 30 year mortgages are the most common but anything from 5 to 40 are out there. This is important because most times the shorter the terms the lower the rate. This will save you money because you are paying less interest per month, and paying interest for less months!

One other area to look at is bi-monthly payments. This can save you money because if you pay every two weeks instead of once a month you will actually make 13 payments a year and not 12 which will save you tons of interest over the life of the loan. Just make sure you aren’t charged a fee to participate in a program like this. Remember you are basically just making one extra payment. So if you are going to be charged a fee, just save up on your own and make the extra payment at the end of the year on your own.

So if you have the means an want to buy a new home now is definitely the time. There are some really great deals out there. Just be smart and really look over the find print to make sure you are getting the best deal you can.

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