Articles on Mortgages | Topics: mortgages, mortgage, mortgaging
by Yolanda Vazquez
The fine print on your mortgage papers is incredibly important to read because if you don't you may find yourself in a predicament that you really don't want to be in. You should read every page of the fine print and take as much time as you need to do it. This way you know you are not getting anything more than what you want. In the end it could save you a lot of time and money. Below are some of the things you should look out for while reading the fine print on your mortgage papers.
Balloon payment: you should look for this in your mortgage fine print if your loan isn't that of a balloon loan. Sometimes the lenders will put this is your fine print when it really isn't meant to be there. A balloon payment is when you pay only the interest on your loan and nothing off of your actual principal. This keeps the repayments small and most customers are pleased with this, until they discover the need of a balloon payment at the end. Paying off a large balloon payment is often impossible to do and can cause you to lose your home. So when checking the fine print, make sure a balloon payment is not in your fine print so you won't be caught with any surprises and an incredibly large payment.
Note: You should always be aware for the terms stated in the note. The note is usually where they state if you have not paid your repayment in a certain amount of days the lender has the right to sell your home and you are liable for anything else like extra fees and the banks also has the right to take any of your assets and finances if you do not make your payment.
Notice: you should read this part of your fine print very carefully. This part of the document will tell you how much notice you will receive if you haven't paid your repayment, sometimes it will tell you that you will receive no notice. Make sure you remember to send your payment if you go on a holiday. Send your payment early so you will not have to worry about your check getting lost in the mail. The best way around this problem is to see if you can send you payment via wire transfer so you know it is going exactly where it is meant to be. Also another thing you should look out for in the notice section is whether or not you have time to make up for the missed payment or whether it will just take action on the preceding of foreclosure.
| Bit of History |
My opinion is that we must lend ourselves to others and give ourselves only to ourselves. If my will happened to be prone to mortgage and attach itself, I would not last: I am too tender, both by nature and by practice.
| —Michel de Montaigne (1533–1592) |
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Acceleration: this clause gives the lender the right to speed up the time when your mortgage loan is due and has the right to ask for the full amount due on your loan straight away if you miss a repayment. Also you should look for what notice they will give you in the event that this happens because sometimes it is said to give no notice.
Extra fees: always look out for any extra fees that you do not recognize when reading your mortgage fine print so you do not get hit with these fees that you are not aware of.
Another thing that you should look out for when reading your mortgage papers fine print is to make sure that everything is as it is agreed upon. Be sure that all of the closing fees, interests and other such terms are the same as first agreed upon.
Reading your mortgage paper's fine print can be a big job but it is incredibly important one. You need to know what you are signing and agreeing to. While reading, take as long as you like and don't let anyone pressure you into moving the process along. If you are confused about any of the terms stipulated in the fine print or have any questions then go ahead and ask them. Get a clear definition of what all terms mean and what they are all about. Also don't be afraid to get another person to look the fine print over, like a trusted friend or your lawyer to see what they think. They may be able to point out something that you missed. It is better to be safe than sorry.
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