Playing the Mortgage Game

While it is no secret that most individuals can not pay cash for a home or eventually will want to refinance their existing mortgage for a better interest rate or to pay off some unwanted bills; playing the mortgage game can be both frustrating and exhausting. The mortgage game is one that most individuals will play at one point or another in their lifetime, and if they arm themselves with reliable information and the results from a quality mortgage calculator it just might be a game they can win.
To play this game the first thing anyone needs to figure out is exactly what kind of a mortgage they will need. This step is pretty simple since the most popular mortgages are a first mortgage for individuals who are purchasing a home; a second or third mortgage, for refinancing purposes; and a reversed mortgage for seniors. Each of these loans has their own specific rules and as a result will need a special mortgage calculator to help the consumer find the perfect loan.
Within each of these major categories there are many different types of loans available, along with many different terms and interest rates it is best to start with good research no matter what type of loan an individual needs. This will help the consumer traverse the mortgage game a little easier, and will also allow them to anticipate every aspect of the process. The first step in this process is to know and understand an individual’s credit score. This is one of the most important numbers in a person’s life and they need to check their credit regularly to ensure there are no mistakes. Once the credit score is known, then it is possible to have a general idea on the amount of interest that will be attached to any loan.
After knowing what the possible interest rate on a loan will be, the next important step is to look at the household financial information. When assessing the families finances include the miscellaneous expenses that every household has into the budget. This will ensure that the monthly payment that is agreed upon is actually within an individual’s comfort zone. The next step is to put all of this information into a mortgage calculator, and it will tell a person how much they can realistically borrow based on the information they have provided.
Once anyone is armed with good research and the results from their mortgage calculator, then they are ready to begin the mortgage game. To play this game a person needs to be as well informed as possible, so they can go to their lending institution with confidence knowing they are going to get the best type of mortgage for their situation. This can be one of the most important and frustrating games an individual will ever play as an adult and even though it is called a game it needs to be taken very seriously. In this game knowledge is what will help the consumer win the day.

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