Mortgage may not be your comfort zone. Most people have little to no knowledge about mortgage, unless we actually need it in our lives. But, knowing about mortgages will really help you later when you want to settle down in your own home.
We are not saying that you can talk to your blind date about mortgage and show off your knowledge but there will be many times when knowledge about mortgage will come in handy.
If you think you already know a lot about mortgages, why not take a quick test to see what is the actual level of your knowledge about mortgages. Take this Mortgage IQ Quiz by Zillow and check for yourself:
Mortgage IQ Quiz
Homeowners and home shoppers, take this quiz to see if you have the basic know-how to navigate the mortgage process.
If you didn’t score too well, then there is nothing to worry about. Mortgage is not as tricky as it seems. If you focus on the right things, you will realize that it is simpler than you thought.
Margaret Heidenry at Realtor has made an effort to clarify some things for you:
Mortgage Math Made Simple
By Margaret Heidenry | Jul 25, 2016
What’s more terrifying than global warming, national economic collapse, or a zombie apocalypse? For many of us, it’s math—especially the type involved in securing a mortgage to buy a home.
But mortgage math doesn’t have to be intimidating. Though a home loan does indeed involve a few equations, it’s fairly easy to break it all down into the kind of simple arithmetic every home buyer can understand and, more important, needs to know.
Wall Street Survivor has explained a few basic mortgage facts in this video:
This blog post at Remax also tends to explain mortgage related knowledge pretty neatly:
As a potential new homeowner, we’re here to bring you back to the days of chalkboards and textbooks to remind you of the importance of doing your homework to help make the most of your real estate investment. By following these tips, you will have a deeper understanding of the different types of mortgages so you can make an informed decision when it comes time to choose the right one for you.
Do Your Credit Report Homework
Before you start applying for your mortgage, be proactive and get a copy of your credit report. Once you have it, thoroughly check for errors and other items which may need to be addressed. Since your ability to get a desired mortgage rate largely depends on the information contained in your credit report, it’s important for you to ensure that all the information is correct.
Once you have developed a basic understanding of mortgage, you will realize that it is not that difficult after all.