11 mortgage mistakes that most people make

DEC 13, 2017 AT 01:48 AM

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6. You believe everything the internet says

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Banks and big brokers use internet advertisements and fake ratings to sell their services. Every day, hundreds of people sign up for bad deals and lose huge amounts of money, all because of believing the wrong information. Check everything twice, take a look at relevant forums, and consult your financial advisor before making the final decision.

Mortgage is not a thing to hurry up about. It is better to take your time to compare terms and conditions, or look for a good broker or bank. You can save up to 20% of your money over the next few years if only you start checking information on mortgage carefully.

 

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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.

7. You chose the longest repayment period possible

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It’s quite a good feeling when you manage to obtain a loan. However, it won’t be a clever idea to stretch the repayment period as much as you can. For every additional year, you’ll pay a higher interest rate, and in the end it will be such a huge overpayment.

Just consider wisely what would be an optimal repayment period based on your income. Make sure that the contract will allow you to pay early with reduced interests or flexible installments. This is important because you might change your job or get promoted to a position with a higher salary.

 

ADVERTISEMENT

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.