Frequently Asked Questions About MTMortgageLoans

Here are some frequently asked questions (and their answers) about MTMortgageLoans.com

What if I have less than perfect credit?

You should do all you can to repair any issues with your credit before you apply for a mortgage loan if at all possible. Pay off any collections, and stay current on your bills for a year before you submit your application. If, however, you feel driven to apply anyway with less than perfect credit, there are lenders available in our network who may work with you. Understand, however, that a lower credit rating will almost always mean higher interest rates on a loan as the bank works to cover the possibility of loss by charging you more.

How much does it cost to get a loan from a lender in your network?

There is no cost to you to receive a referral to a lender in our network. We make no claims about fees that lenders may charge you in the processing of your loan, however. Once you have received your free quotes, you can contact the lenders for more information and specifics on the contract, terms and fees.

Can I get a loan if I can't come up with 20% down?

There are loan programs available, such as the government backed FHA loan for first time home buyers, that will allow you to purchase a home with substantially less than 20% down. 0 down options also exist, though they have become much more difficult to qualify for since the housing crisis of 2008. If you have a smaller down payment, be prepared for the lender to expect you to make up for it in other ways such as by having a very long, stable work history and higher income levels than would otherwise have been required.

What's the difference between a fixed rate mortgage and an adjustable rate?

A fixed rate mortgage is a mortgage loan that does not have a changeable interest rate. If you purchase the home and get the loan at 5.6%, then when you send the last payment for the loan in, whether it be 10, 30, or 60 years later, you will still be paying 5.6%. An adjustable rate mortgage starts off with a low interest rate usually, but then the interest rate will begin to adjust according to market factors that are beyond your control. This adjustment will affect the price of your mortgage and how much you pay every month. The upside to this type of loan is if you get it at the right time you can start with a low interest rate that gets even lower. The obvious downside is that your interest rate can go very high, almost without limits, making your home mortgage payment more expensive than you can manage.

Is a lower interest rate loan always best?

Usually, but there are circumstances when paying a higher interest rate can be more profitable, for example, with a loan that has a significantly shorter term.