|
|
 |
Financial Planning Newsroom |
|
|
|
< Back to Previous Page
The FDIC Issues Tips on Shopping for and Negotiating a Good Mortgage in the New, Tougher Climate for Loans
Other topics in the latest FDIC Consumer News include answers to common questions about deposit insurance and money-wise suggestions for the tax season
While it may be tougher to get mortgages because of recent problems in the housing market, the latest issue of the Federal Deposit Insurance Corporation's quarterly newsletter for consumers says that "many good loan programs are still available" and offers tips to help people shop for and negotiate the right deal. The Fall 2007 FDIC Consumer News also includes advice for borrowers about restructuring or refinancing their existing mortgage if they face the prospect of losing their homes because of rising monthly payments.
The main article, entitled "The New Climate for Mortgage Borrowers," features a variety of suggestions for obtaining a new mortgage or refinancing an existing one. Among them: Try to raise your credit score in the months before you apply for a mortgage, such as by paying off much or all of what you owe on credit cards. Contact several lenders, let them know you are comparison shopping, and then try to negotiate the best deal. Compare fixed-rate and adjustable-rate mortgages (ARMs), even if the latter carries a lower initial interest rate, because a fixed-rate loan may be cheaper in the long run. Be wary of a loan with payments that can increase substantially, such as mortgages with low monthly payments in the early years in exchange for the deferred repayment of principal and/or interest. And, watch out for unfair and deceptive sales practices that lure people into costly or inappropriate loans.
For the rest of this article please feel free to visit the Federal Deposit Insurance Corporation online at www.fdic.gov.
|
Contact a financial professional in your area now for a free case review.
|
|
|
|
|
|
