You will find Arizona mortgage rates advertised on the Internet and in the newspapers. What you need to know is the mortgage industry is highly competitive. Many lenders advertise their best rates, but those are not necessarily the rates that you may receive most of the time.
Because it is impossible for lenders to advertise all their fixed rate or variable rate mortgages, some lenders offer what are called teaser rates. These are low rates and then leave you with a high payment later. This is not an Arizona mortgage that you want because you may end up losing your home to foreclosure if you default because you cannot afford the higher rates when the loan resets.
Watch out for negative amortization and adjustable rate mortgages (ARM’s) that have low monthly payments. The problem with these loans are you never end up paying off the interest or your principal. ARM’s are good if you are going to keep your home less than five years and home prices are appreciating. Otherwise, your ARM may reset and you could default because you could not afford the new payment. Read all the fine print. If something doesn’t look right, chances are it is not. Trust your instincts. While most loan companies and mortgage broker are honest, there are a few bad apples in every business. Avoid loans with pre-payment penalties as well.
You should comparison shop before choosing a loan product. Educate yourself about the different types of loans, points and other fees associated with the costs of borrowing. There is plenty of information available on the Internet and at the library. Only work with a reputable Arizona mortgage broker that you trust. Do not be hooked into lower teaser rate loans. Choose your loan carefully. It is a big decision. Don’t rush into anything and don’t let any lender rush you either. Ask questions. If your lender or mortgage broker does not want to explain your loan or answer your questions, then work with someone else. All reputable lenders and mortgage broker will take the time to go over the loan documents with you and give you the required disclosures under Arizona law. By taking your time and reviewing your loan carefully, you should be able to make the right decision and find a loan product you can afford.
If you have any questions about this or if you have any questions you’d like us to answer on our podcast, you can email your questions to firstname.lastname@example.org or give us a call at (602) 535-2171. Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.
Thanks for listening and reading the Mortgage Brothers Show. Let us know if you have any questions you’d like us to answer on this podcast. You can email your questions to Tom@AZMortgageBrothers.com or Eddie@AZMortgageBrothers.com.
Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.
Signature Home Loans LLC does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Signature Home Loans NMLS 1007154, NMLS #210917 and 1618695. Equal housing lender.BACK TO LIST