Mortgages

Back in 1978 there were very few types of home mortgage loans. Almost all were 30 year loans. All were fixed rate and payment. FHA and VA really had one main type of loan. The government set the interest rates for FHA and VA and Conventional loan rates followed closely. If someone asked me what the interest rate was, there was a quick and concise answer.

Now we have hundreds or thousands of different loans. Some are interest only, some finance in the closing costs, some involve government assistance, and some have variable rates of interest. The interest rate you are charged depends on your credit score, how much equity you are putting into the home, and a few other factors.

It is very easy for a borrower to become overwhelmed by all the available data. You can easily end up getting a loan that might enrich the loan officer without concern for what is best for you. Some scoundrels have even been caught in abusive loan practices and mortgage fraud. If someone offers you an extremely low rate, asks for several sizable fees to be paid up front, and 24 hours before the scheduled closing comes back saying that "because of your situation" they are having to raise your rate or fees dramatically, then you might be a victim. The real crooks like to wait until you are so committed emotionally and financially that you feel forced to go forward.

Don't select a loan officer blindly. Not even from what seems like a reputable company. Ask your friends that have recently bought a home, and your Realtor can recommend someone with a great reputation that they have watched help many others. These professional mortgage officers can help find the best loan for you and at the best rate. They also have the skills to work thru challenges as they arrive.