WHAT IS YOUR MORTGAGE IQ ?

If you are like most people you probably were semi-comatose at your closing on your home. You were told a lot of things which you probably don’t remember. If you are typical of most buyers you probably never read every clause of your mortgage. If you did, you probably forgot what you read. The closing attorney is anxious to get the closing over with as quickly as possible and never goes over every clause. So, did you miss anything important? Well, yeah. I went over my mortgage and found out the following.

  1. I could have killed the deal within 3 days after signing
  2. I had to have insurance approval by my lender, or they could have required other coverage.
  3. If I gave a bad check to the lender they could require future payment in cash, money order, or certified funds. (I pay direct deposit) to avoid this and to pay on time.
  4. The buyer has 60 days to move in or they are in default and the loan could be called in.
  5. The buyer has to live in the house for 1 year before they can rent their house out.
  6. Forget about storing hazardous materials or Mr. Banker will make you pay________up.
  7. I can pay off the loan with no prepayment penalty.
  8. I can pay more on principal when I want to.
  9. I must keep insurance on the property to protect the lenders interest in the property.

10.  If I am late on a payment I pay a 5% penalty. Whoa, that is heavy. What about usury?

11.  Any one on the deed is responsible for the whole note. Be careful co-signing . It can cost you.

12.  Escrows can include insurance, taxes, and home owner fees

Broker Bob Mandel, CEO Real estate Advocates Network, Columbia SC Real Estate

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