Deciphering Mortgage Terms: What Information to Consider Before Borrowing & Where to Go to Find It

When it comes to choosing a mortgage, it is important to recognize that the future cannot be fully understood until it arrives. There is likely going to be bumps in the road and life events that will affect a home borrower’s goals. Yet, taking an educated guess and setting goals for a mortgage is an important part of being a responsible borrower.

One of the questions that borrowers should ask themselves is how long they are likely to remain in their house before considering moving. This is important because a mortgage needs to be adaptable to the homeowner’s needs and not all loans are crafted in this way. Borrowers should also consider whether or not they anticipate income changes during the life of the mortgage. Life events such as marriage, children and retirement should also be considered. The reason? Those loans with completely concrete terms do not make changes easy—even if at a lower rate—can be very problematic for those who will have life event changes ahead.

The great thing about todays technologically world is that there are numerous tools out there to help potential borrower’s research different loan terms and options from the comfort of their homes. There are sites that take all known terms and conditions and present them visually in a way that is easy to compare. Further, these sites can also highlight the strengths and weaknesses of a particular lender as well.

But, it should be noted that these sites should serve as part of the research process, not the entirety. Rate comparison tools often provide incomplete information or, more accurately put, the highlights of a loan. They may be sponsored sites where objectivity may come into question. These sites, then, should be used in conjunction with actual conversations with lenders. Utilizing both can create a very clear and accurate comparative portrait.

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