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Avoid
loan pitfalls
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If
it sounds too good...
I all know the old saying, "If it sounds too good
to be true, it is!" Keep this in mind when loan shopping.
Every lender has to make money, and many are selling their
loans to the same exact investors. The result? Most lenders
can't offer anything much different than another. Go with
someone who will be honest with you.
need to
find a good lender?
call me at 801-365-3366
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Interest rates are constantly changing,
and are driven by many unpredictable factors. Just keep
in mind that your interest rate represents only a part
of your total loan costs.
Fixed rate. This is one of the most
straightforward loans. Whatever rate you get at the closing
table is the same rate you'll keep for the life of the
loan. This is a great product, especially when rates are
low.
Variable rate (ARM). These loan terms,
and your payments, will vary over time. Your interest
rate will fluctuate up and down along with market factors.
This product can allow buyers to start with a lower payment,
then have an increasing payment in the future. Generally
people will use this type of product to keep payments
lower for now, with the expectation that income or other
situations will increase their "buying power"
in the future.
Interest only. Let's say you borrow $297,000.
When you sell your home, you will still owe $297,000 back
to the bank. The loan is designed to allow you to buy
at a higher price, but keep your payment lower. It's a
good loan for many reasons, but not the best in most cases.
Bottom line? The lender is going to get a LOT more of
your money, especially over time.
Contact Tony Fantis, Realtor and member of the RE/MAX 100% Club to buy or sell today at 801-365-3366
or 800-827-7362.
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