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More mortgage buying tips

Buying a mortgage can be a tedious and time consuming task, especially if you are new to the field. Therefore, here are a few useful tips that you may be able to use to make your mortgage buying experience a better one.

1. Don’t take the first mortgage you are offered. Differences between mortgages could amount to thousands of dollars over the years. Therefore makes sure you’ve compared the mortgages before settling for one.

2. Shop around for different mortgage plans and spend some time reading through the terms and conditions. You may get lucky and come across a really good deal.

3. Look for a mortgage lender who is offering a “loss leader”. Provided that your mortgage plan does not have a lock in you can shop around for a better deal at the end of it. For an example get a plan that would allow you to get a new mortgage every two years or so.

4. Beware of redemption penalties. Redemption penalties are set so that the mortgage lender is compensated if you decide to leave before the period is over. For an example, if you have a mortgage for 5 years and you want to leave in 3, the mortgage penalty would ensure that the lender is compensated for the loss of revenue for the 2 years that you will not be there.

5. Do not be taken in by a low sounding interest rate. Many mortgage lenders will offer you very low interest rates. However, there is almost always a catch and it most often comes with a long term tie in that you cannot get out of.