5 Things to Look for in Free Home Loan Quotes

When considering refinancing or purchasing a home, free home loan quotes can be the ideal resource of information. These quotes will give you the information you need regarding the loan and also give you an idea of what the lenders can offer you. Quotes come to you without any obligation and costs, therefore no risks. But always take the responsibility of ensuring all points of the quotes are given due attention and consideration.

Mortgage lenders can offer you these free home loan quotes online. Just giving your name and kind of loan you are interested in will allow you to get a huge amount of information. These 5 things listed are the most important points to look into in every quote you get.

1. Interest Rate

   The interest rate is the price tag of your loan. Always remember that the lower the interest rate typically means the more house you can afford.

2. Term

   When talking about loans, the word “term” pertains to the length. When securing a home mortgage, it is important that you get the right term. Remember that a short term will mean a higher monthly payment.

3. Monthly Payment

   It is important that you get a good balance of the monthly payment and the term of the loan. Does the quote you requested show you a monthly payment amount that you can afford?

4. Closing Costs

   The closing cost is the amount you will need to pay to be able to purchase a loan. Free home loan quotes provided by mortgage lenders present this information to you first hand. Some others do as well, but if in case they don’t – make sure you ask for it. This becomes very important when you refinance to ensure that in the long run you are saving more money than spending it.

5. Borrowed Amount

   The borrowed amount is the amount you borrow from the lender to buy the home you want. Depending on the location of your mortgage, the price of houses can be quite high so it is important that you make sure your borrowed amount will be enough. If not, look around and see if there is another lender that can and will provide you with the terms you need.

Free home loan quotes provided by lenders give you all the above information. What’s left for you to do is to simply compare the options available. One can have a lower interest rate but a longer term. A longer term means longer payment, so in the end, you still pay more. You may also find out some lenders can be less secure than the others, or that some can offer early payoff options - which some lenders do not offer. There are indeed so many options available.

Real Estate Markets Where Appreciation Happens

What are the Fastest Appreciating Real Estate Markets

CNNMoney.com listed recently the best and worst performing real estate markets. If you check out the real estate values, you will realize that they are more in the local element of a state. This simple means that aside from looking at the bigger, state picture of your home’s market value, it is also important that you consider the local factors of the market – even on your street itself.

Based on the CNN Money forecast, if you are looking for the best place to see appreciation values you should check out homes in Southern California. On the other hand should you want to see the worst, well it is interestingly Hanford, California.

Top performing cities includes:

• Merced, Wyoming
• Washington, California
• Corvallis, Arkansas
• Bremerton, Washington
• Tacoma, Oregon
• Bend, Oregon. 

If you observed, the best performing of these cities belong to the Northwestern portion of the country. And the least performing are in the southern and mid Atlantic.

What This Means to me?

As a prospective home buyer, what does this information mean? They are very important if you look at the local aspects. There is a big possibility that your property will not be affected in any way, whether positive or negative, when there are changes in the nationwide trends.

It is important to know what has been happening in the real estate markets because:

1. The appreciation of home values will mean buying a new home is more expensive. Right now, there is appreciation seen in many local cities, as predicted by experts.
2. The home prices and interest rates are quite low. This only indicates that this is the best, perfect time to purchase a new property because of the great deal you will get. If you check and compare data from 5 years ago, you will see how low the home values now are.
3. If you wait for six months to a year before finalizing the decision to buy a property, you will just be likely to pay more since home values have started to creep back upwards.

Knowing this information, you can now weigh in what you should do. Well, the very first thing would be getting and collecting a mortgage loan quotes to see what your options are. Through these quotes, you will be able to see the costs of purchasing a home now and what interest rates you will be paying –whether it is short term or long term you desire.

Contact your lender and talk to him. Get his estimate of the value of your home. You should not forget, however, that you should take a look at the overall goals you aim for in buying. But my suggestion is that if you are planning to purchase a property in the next six months, might as well move now and get pre-qualified for a home loan and see for yourself how much you will get to save before the costs go up.