Mortgage Interest Rate

Mortgage Interest Rate

Is it worth to refinance a mortgageThe amount that a debtor (buyer, new home buyer) has to pay to the creditor (the mortgage lender, bank, loan companies) over a period of time in relation to the amount of the principal of the loan.

Any down payments, deposit or debt security, usually will influence the interest rate percentage terms.
This interest rate is the price the borrower pays for the use of money they borrow from a lender.

This interest rate is the revenue the bank or lender for the money they buy from the federal bank. So the mortgage interest rate will usually be prime interest rate +%.

When you lend 100,000$ from the bank, and have 5% mortgage interest rate, in the first year you owe 105,000$ .

There are many way to calculate the return of the mortgage. and there are many kinds of interest rates – ARM (Adjustable Rate Mortgage) Fixed rate mortgages, Interest only mortgage (IO mortgage) and more.

So What Can You Do To Improve Your Situation?

If you will do nothing.. don’t expect anything to happen. The best advice is to bump your credit score up! It will give you better leverage when facing the lenders, and better negotiation position when applying for any financial need.

Lets not forget you are probably paying $500-$1000 extra per year in higher interest rates, and credit payments.

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You are probably paying thousands of dollars per year in fees and interests to credit companies which could be going straight to your pocket. Don’t be cheap when it comes to financial education..

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