What's in Your Mortgage Loan Package?

Once you've decided what type of mortgage suits your needs, you decide on a package of loan options. This is the fun stuff. (Okay, it's not fun. But it's very very important.)

This section:

  • Works through each part of your loan package

  • Helps you decide which options are right for you

  • Takes an integrative approach to the mortgage package

In the following pages we describe the elements of the mortgage package.

The second section of the guide examines your credit capacity and how lenders look at mortgage collateral.

Refer to the table of contents if you're looking for specific information.

What's a "mortgage package"?

It's a good question. Seems like a loan is a loan is a loan. But since mortgages are such big loans, made up of so many different parts, we refer to them as a package.

And your home is such a big investment (the biggest investment most Americans make in their lifetimes), that it pays to understand all the details.

Not only that, but the different aspects of a mortgage are very interrelated. (Your down payment decides your PMI bill. The discount points you pay influence the interest rate you earn.) So we think it's best to go through every part of the loan package, even if there are some parts you think don't apply to you.

It helps to understand all the options before you're faced with choosing a product on your loan application.

Sidebar
If you know that your credit score is higher than 620, you're set, because you qualify for the guaranteed lowest rates in the country and no lending fees at Eloan. All you have to do is visit there and get pre-approved.

If your credit history is not so hot, then check out FullSpectrum Lending for special attention to your specific situation and the lowest sub prime rates anywhere.

How this guide can help

This "loan package" guide is intended to help you analyze all your mortgage options, both singly, and in relation to each other.

We've broken the mortgage into six basic elements to make it easier. Each element corresponds to a page in the guide. We recommend reading each section to make sure your needs are met as closely as possible.

The mortgage principal page discusses both how to set a healthy loan amount and how to get a lender to approve you.

The interest rate guide tackles that big concern to every home buyer.

The discount points guide helps you decide if you should opt for these often-misunderstood money-savers.

The down payment page examines how the money you invest now decides how much you pay on the entire mortgage.

The PMI page advises you on how to avoid (or at least minimize) the expense of this useless cost.

And finally, the closing cost list explains the "extra" costs you see at closing and gives you tips on separating the wheat from the chaff.

Whew! Although these guides all stand alone, it's a good idea to read all six. Just to make sure your mortgage expectations are reasonable and wise.



First up: Your mortgage principal

Get a little financial lesson every week:

Saving on taxes is a year-long process. Start learning how to save year-round by reading our weekly personal finance newsletter, with articles, tips, blog posts, and great deals that will save you money.

Subscribe here: