May 27 2020
May 27 2020
May 27 2020
It's possible that the most organized and financially knowledgeable borrowers can locate the lowest rate mortgage loan without help. But for the rest of us, there's Mortgageloan.com to help us out. Your mortgage search process can be broken down into the following steps:
- Understanding your budget and potential tax savings.
- Reviewing mortgage interest rates and types of mortgage loans.
- Locating and contacting suitable lenders.
- Submitting loan applications.
- Evaluating mortgage offers.
Mortgageloan.com has the information necessary to assist you every step of the way. You can review mortgage tips and articles, learn more about loan types with mortgage calculators, and browse lender contact information in our Chicago broker directory.
If you have a very low tolerance for risk, the fixed-rate mortgage (FRM) might be the appropriate loan type for you. Many borrowers prefer the fixed-rate structure because it offers the security of a locked-in rate and predictable monthly payment amount. Traditional FRMs are also fully amortizing, so there are no balloon payments that need to be refinanced. Most often, these loans mature in 30 years, but longer or shorter terms are available. You can get the lowest rate on your FRM by selecting the shortest payoff term that you can afford.
Saving on Taxes
As soon as you become a homeowner, you'll have the option to deduct certain expenses on your tax return. The IRS allows you to deduct:
- Property taxes. These are deductible in the year paid.
- Interest expenses. In the earliest years of a mortgage loan, you're paying far more interest than principal. This gives you the largest tax deductions in your first years of home ownership.
- Points paid. Points paid on a purchase can be deducted in the year paid. Points paid on a refinance are deducted over the loan term.
- To estimate your tax savings, visit Mortgageloan.com's Tax Savings Calculator.
How to Compare
You stand to save the most money on your mortgage by collecting several written offers. Start by contacting a handful or more of qualified Chicago lenders and submitting full mortgage applications. You'll find lender contact information in our Chicago broker directory.
When your loan offers start rolling in, don't make quick decisions based on the payment amount. A low payment is great for your budget, up to a point. Sometimes, a low payment means slower payoff of the debt. Delayed payoff generally raises your interest costs, and slows the build-up of home equity. Because these consequences may not be immediately obvious, you might want to sort your mortgage offers by loan type first. Review any FRM quotes together, and then separately look over your adjustable-rate mortgage (ARM) offers. The final step would be comparing your best FRM to your best ARM using Mortgageloan.com's mortgage calculators.
The Windy City has more than deep dish pizza, stunning skylines, a bustling waterfront, and Oprah. You'll also find qualified mortgage lenders and great mortgage options to help you buy or refinance your Chicago home.