There are few among us who haven’t taken advantage of something that looked like a great deal only to find out that the fine print made it less desirable than we hoped. That’s not always a huge problem when it is a relatively small investment, but when it comes to something as monumental as mortgages, the results can be difficult to overcome. That is why it is critical to review the restrictions and other fine print when considering lower rate mortgages. Getting just a percentage point or two off might not be worth it in the end if there is a clause in there that doesn’t work with your future plans.
This is not to say that lower rate mortgages aren’t a good idea. The key is knowing what the restrictions are, so you are not unpleasantly surprised later. For example, if the low-rate mortgage includes a prepayment penalty, that might not matter to you if you are certain you won’t need to relocate or otherwise pay off the mortgage early.
The thing to know is that a low rate generally means you are giving up something. That’s just the way things work. The important thing is to know what that is and whether it matters to you. You do not want your interest savings to be lost due to a restriction you didn’t expect. Going into mortgages with your eyes wide open is critical to getting the results you expect.
At Donna Mullen & Associates, we make it our duty to educate our clients to ensure they fully understand the mortgages they are about to obtain. We want you to have all the information in hand, and we will guide you throughout the process, so you can choose the best option for your situation. Contact us today to learn more about the importance of reading the fine print with mortgages.