11 mortgage mistakes that most people make

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.

 

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.