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  • Suggest You - Top 10 Mortgage Mistakes

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    Mistake #8: The borrower doesn’t know if he or she is paying a back-end yield spread or service release premium - fees paid to brokers and loan officers
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    Nowadays, enticements to borrow are as common as a credit card offer in your mailbox, such as offers for home equity loans and lines of credit. As a borrower, use these tips to avoid common mortgage mistakes:

    Mistake #1: Not knowing which mortgage fees the borrower can and cannot negotiate.
    Mistake #2: Trusting the first loan officer interviewed. Be sure to shop around.
    Mistake #3: Using an interest-only or payment option adjustable rate loan to qualify for a more expensive house.
    Mistake #4: Thinking the interest rate is always the main thing.
    Mistake #5: Not comparing the final fees listed on the closing documents to the upfront estimates and good faith estimate. Don’t allow the lender to pack the loan with add-on fees without the borrower’s knowledge.
    Mistake #6: Not knowing if the mortgage has a pre-payment penalty until it’s too late, such as when the borrower decides to refinance or pay the mortgage off early.
    Mistake #7: Thinking that renting is always a waste of money. If you can rent cheaper while saving money to buy your first home, it’s not necessarily an unwise decision.
    Mistake #8: The borrower doesn’t know if he or she is paying a back-end yield spread or service release premium - fees paid to brokers and loan officers

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    fees the borrower can and cannot negotiate.
    Mistake #2: Trusting the first loan officer interviewed. Be sure to shop around.
    Mistake #3: Using an interest-only or payment option adjustable rate loan to qualify for a more expensive house.
    Mistake #4: Thinking the interest rate is always the main thing.
    Mistake #5: Not comparing the final fees listed on the closing documents to the upfront estimates and good faith estimate. Don’t allow the lender to pack the loan with add-on fees without the borrower’s knowledge.
    Mistake #6: Not knowing if the mortgage has a pre-payment penalty until it’s too late, such as when the borrower decides to refinance or pay the mortgage off early.
    Mistake #7: Thinking that renting is always a waste of money. If you can rent cheaper while saving money to buy your first home, it’s not necessarily an unwise decision.
    Mistake #8: The borrower doesn’t know if he or she is paying a back-end yield spread or service release premium - fees paid to brokers and loan officers
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    stake #4: Thinking the interest rate is always the main thing.
    Mistake #5: Not comparing the final fees listed on the closing documents to the upfront estimates and good faith estimate. Don’t allow the lender to pack the loan with add-on fees without the borrower’s knowledge.
    Mistake #6: Not knowing if the mortgage has a pre-payment penalty until it’s too late, such as when the borrower decides to refinance or pay the mortgage off early.
    Mistake #7: Thinking that renting is always a waste of money. If you can rent cheaper while saving money to buy your first home, it’s not necessarily an unwise decision.
    Mistake #8: The borrower doesn’t know if he or she is paying a back-end yield spread or service release premium - fees paid to brokers and loan officers
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    orrower’s knowledge.
    Mistake #6: Not knowing if the mortgage has a pre-payment penalty until it’s too late, such as when the borrower decides to refinance or pay the mortgage off early.
    Mistake #7: Thinking that renting is always a waste of money. If you can rent cheaper while saving money to buy your first home, it’s not necessarily an unwise decision.
    Mistake #8: The borrower doesn’t know if he or she is paying a back-end yield spread or service release premium - fees paid to brokers and loan officers
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    If you can rent cheaper while saving money to buy your first home, it’s not necessarily an unwise decision.
    Mistake #8: The borrower doesn’t know if he or she is paying a back-end yield spread or service release premium - fees paid to brokers and loan officers for making loans with higher interest rates.
    Mistake #9: Paying for mortgage life insurance, credit insurance or other expensive but unnecessary lender add-ons.
    Mistake #10: Paying hundreds of dollars to have a company set-up a bi-weekly mortgage payment plan, which is something the borrower can generally do at no cost.

    If you are a borrower, use the following tips to ensure you get a fair deal.

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