6 Things You (Probably) Didn’t Know About Mortgage Finance


Time for a reality check. Most people are not going to know that much about mortgage finance unless someone teaches them or they learn about it school.

Some of you may be in the process of buying a home.

There’s a lot of ground to cover if you are going to make that happen.

Six Things You Should Know About Mortgage Finance

1) You’ll be paying a lot of interest in the beginning.

Paying more each month is going to lessen what you pay at the end.

The money is applied to the interest first, then to the principal amount.

2) You can shop around to see what others are offering.

Some people assume their credit score is affected every time they inquire about a mortgage.

That is not true.

You can shop around to five different places before your score gets called into question.

It’s better to be safe rather than sorry.

The first offer you receive is not going to be your best offer, no matter what they tell you.

3) The rates will vary.

Some lenders use a “lock-in” option. That means they close at a rate at the time of the application.

That rate can go up or down at any time.

4) You can negotiate the terms.

You do need to have an extensive knowledge of the market to do that.

You can’t start bartering without a leg to stand on. Do a lot of research before you attempt this.

You need to convince the guy another bank’s offer is better than theirs. Typically, that’s a hard thing to do.

Why Are U.S. Dollars Green?

5) Do you have a low credit score? You shouldn’t let that stop you.

You can get approved.

It just might take a while.

You can get approved for things like an FHA or a VA home loan. Be sure to look at the requirements first, though.

6) You need to pay at least 20% down on your mortgage at the time of the close.

You can spend less, but you need to be approved for a PMI first.

You do have the right to privacy. You need to protect what is yours.


Be patient. Look at all your options. There is a mortgage out there for you that fits your needs and budget. Don’t give up, and you will find it.

If you want to learn more about a variety of subjects, make sure to check out our services! We recommend you start here and check out the variety of topics.

Happy learning!



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