11 mortgage mistakes that most people make

DEC 13, 2017 AT 01:48 AM
by Mary Weber

150636

10. You pay too much attention to interest rates

The interest rate isn’t the only payment you need to cover. Lots of people bump into awkward situations when they take “rewarding” loans with low interest rates only to find out that they have to repay much more than in other cases.

You also need to pay close attention to insurance cost, commissions and ongoing payments, different extra payments that are included in the contract and fees for money transfer to the bank’s account. These factors are sometimes even more important than the interest rates.

Do you have spare 150 000 $ in your pocket? This is the amount of money one can easily overpay after taking the wrong kind of loan. Mortgage has both its good and bad sides. It allows us to acquire and live in our own house and stop paying rent every month.

11. You rely on brokers’ advice

Stay away from blogs of loan brokers and mortgage intermediaries. Of course, sometimes it’s a good idea to use the services of a broker but don’t forget that you can also save the commission money paid to the broker.

Even if we don’t take the commission money, a direct approach when dealing with lenders will give you a wide range of options to save money, especially if you know something about finance. You should find a helpful bank clerk and have full consultations with them including pre-counting of all your future payments.