|
A community of people who love to write
The easiest domain name (Note the .ORG) - Absolutely Free! |
Home | Submit Articles | Login |
| ALL Categories | HEALTH | EDUCATION | FINANCE | TECH | WOMEN | ENTERTAINMENT | TRAVEL | |||
What every home owner needs to know of home mortgage ratesBY: David Prakash Kumar | Category: Home Improvement | Post Date: 2009-11-07
Mortgage rates are very important when a person purchases a house. It is a fact that most people will not be able to afford the payment of the cost of their house. These people need some money from various sources to pay the initial payment and also the cost for the monthly installments if any. Instead of this method of buying the house, various financial institutions help individuals in purchasing the house and in turn the individual has to give the house deeds to the company. The individual can make monthly payments to the financial institution after an initial down payment. This is the system in which the mortgage works. The rate of the mortgage though depends on various factors that may be in the control of the person who has taken the mortgage. Many of the factors are usually not in the control of the person. These factors depend on the economic situation prevalent at that time. The various factors that may play a role in the mortgage rate being determined are listed in this article. 1. The credit history of the individual: The credit history of the individual is very important when the rate is being determined by the financial institution. Usually a person with a very good credit history may get a mortgage at a lesser rate than those who have not had such a good credit history. A good credit history depends on the repayment of any previous loan that the individual might have availed. If the repayment of the previous loan had been very prompt and on time, the rate that is determined for a mortgage will be less. This is the reason for the credit history being very important in the determination of a mortgage rate. 2. The down payment made for the mortgage: The initial payment made by the person for the mortgage taken also plays a major role in the rate of the repayment for the mortgage. If the individual pays a large chunk of the money borrowed for the purchase of the house, then the institution that has made the borrowing available will give the loan or mortgage at a lesser rate. This is because the financial institution will have lesser risk and also a very less chance of losing on their investment. This is the reason for the mortgage rate being less for those who make a large payment initially. 3. The economic situation: The economic situation at the time of the mortgage being taken also plays a very important role in the rate determination. If the economy is booming and people are earning a lot of money, the rates will usually be high because many people will borrow in spite of the cost. The reverse is true when the economy is facing a down turn. People rarely spend money, so they are given loans at a cheaper rate to attract them to purchase houses. 4. Inflation: The inflation depends on the economy and also plays a role in the determination of the interest rate for mortgages. These are the various factors that play a role in the mortgage rate determination. Article Source: http://www.saching.com About Author / Additional Info: I am a physiotherapist and also a freelance writer. I have been writing for many blogs and websites and also take up freelance assignments. Comments are welcome at prakashdavid@rediffmail.com Additional Articles: * Make Things Happen * Communism in America * Dilemma in your fifties - Sandwich generation responsibilities. * Caged Creatures for Kids. Animals that you can keep at home in a cage. * Scuderia Toro Rosso's New Stars and Stripes: Brook Johnston Arrives For Testing In Valencia Does this article violate or infringe on your copyright ? It is a violation of our terms for authors to submit content which they did not write and claim it as their own. If this article infringes on your copyrights, then use our Contact us form with the detailed proof of infringement along with the offending article's title, URL and writer name. If you do not hear back from us then contact us again in another 10 days. Thank you. Comments on this article: (0 comments so far) * Additional comments are now closed for this article *
Article Views: 714 
Copyright © 2010 saching.com - Do not copy articles from this website. Important Disclaimer: All articles on this website are for general information only and is not a professional or experts advice. We do not own any responsibility for correctness or authenticity of the information presented in this article, or any loss or injury resulting from it. We do not endorse these articles, we are neither affiliated with the authors of these articles nor responsible for their content. Please see our disclaimer section for complete terms. |
| Home | Disclaimer | Xhtml |