Being Taken Advantage of When Securing a Home Loan
What many people don’t put into consideration when looking for a home loan is that banks and lenders offer loans for profit? These individuals and institutions are looking to make as much money as possible off your need for a residence. As such, they may weave intricate contracts and terms that sound good to
the unsuspecting borrower but will be even better for making money.
Payments Toward Your Principal
Regardless of which method you choose to use for securing a home loan, only so much money is actually being put towards your principal amount. In many situations, your monthly payments consist mostly of interest amounts. For example, say that you get a 30-year fixed loan on your home for
$84,000. When you break that down, it seems that you would pay $233.33 per month for your residence. After the interest is tacked on, it’s closer to $1,000. Over the span of 30 years, you will have paid the banks more than $276,000 on top of your original $84,000. In total, your loan could be in excess of $360,000 for a home that is appraised at a fourth of that amount.
Trusting Your Lender
Many different kinds of loans are available. The language and adjustments many of these use over time is nothing short of confusing, but don’t be discouraged when looking for a loan. Remember, organizations need to pay their own overhead costs as well.
While it’s important to be cautious, you need to have faith in your leader and trust that they are doing what’s best for you and not their own interests. Examine all documents closely and question anything that you do not understand. Knowledge can give you more power during the process than you may realize.
This 15-minute video will educate you on the truth about the VA hybrid loan and how you can use it effectively as a Veteran or Military homeowner. This video will change the way you look at loans and how much our society has been misled when it comes to 30 yr fixed rate loans. Enjoy: