11 mortgage mistakes that most people make

8. You don’t choose your own repayment schedule

Every mortgage can be changed according to your needs. Remember, it’s the banks and financial companies that want you as their client. Huge level of competition on the loans market allows you to choose between companies and sometimes even to haggle for more rewarding conditions.

Choose your own repayment schedule – make sure it’s convenient for you. This means that you will get a chance choose the repayment dates and the repayment amount per month or year. Sometimes it’s more convenient to make payments every week, whereas in other cases people would rather pay every three months.

 

9. You don’t take into account the closing costs

There are certain expenses connected to closing out the mortgage contract with a company. For example, it can be a paid home inspection, lawyer services, or additional taxes which appear when you finally own the house. You’ll also pay for new property insurance and several other ongoing costs. If you don’t put these costs into consideration, you are likely going to pay almost twice the possible amount.

Think about these additional costs early. Find a lawyer, compare insurance rates, or conduct consultations with the tax office. If you follow these steps, you can avoid paying up to 50% of those expenses that appear at the closing out of a mortgage contract.