What I have found is selecting the right mortgage in many cases, can be less expensive than getting the best rate on a wrong mortgage.

For example, the most common and popular mortgage product is the fixed rate mortgages which are amortized typically for 10, 15, 20, and 30 years.

Most homeowners and homebuyers are comfortable knowing that their monthly payments are fixed, and never change. While that may be a good benefit, most let that override the fact that they may not be living in the home for 30 years!

Let's say a first time homebuyer is purchasing a condominium as a great first step to purchasing a home. This homebuyer is also expecting to move up to a larger home in 3 years. While he may find that the 30 year fixed rate mortgage is a comfortable option, it will not yield him the most savings in monthly payments and note rate.

The better option would be the adjustable rate mortgage. The adjustable rate mortgage with an initial period where the monthly payments and note rate are fixed will be lower than that of a fixed 30 year mortgage. The above homebuyer would benefit from a 3 year fixed mortgage which adjusts for 27 years. They will be out of the home in 3 years anyway, so the adjustment period is of no consequence.

If you don't buy homes or apply for mortgage loans regularly, you may never know if you got the best program for your needs...How do you protect yourself?...Is the most expensive purchase of your life worth legal protection?...You may feel it is, bringing a lawyer into most anything will make even te most unscrupulous of people work extra tight to not incur any litigation...I can't imagine it would cost much to have a lawyer review everything, and again, all involved parties know a lawyer will be reviewing your documents so you can expect a lot less games, but even if it cost $1000 to save potentially 10's if nor 100's of thousands of dollars in penalties, unnecessary interest and fees, wouldn't that be worth it?...You're probably paying your real estate agent $3000 if you're buying a 100K house...Don't really know any other way to protect yourself...

 

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