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Buying a home for the first time came be a daunting task. Not only do you have to find the home, but there is also the issue of financing. How do you pay for your first home? How do you know if the loan the bank is offering is a good one? What happens if you can’t pay the mortgage? These, and other questions, can make home-buying stressful. So, in order to calm a little fear and instill a little confidence, here’s a list of frequently asked questions concerning mortgages and foreclosures.
What is a good mortgage rate?
There isn’t really a ‘good’ mortgage rate in the sense that banks will compete by offering you lower and lower ones to faze others out. Currently the national mortgage rate is between 2% and 4%, according to mortgageloan.com. But your rate is personal and will depend on several factors like your credit rating. It’s always a good idea to enlist the assistance of a corporate law firm to ensure that you’re making the right decision.
Is it better to have a fixed or adjustable rate mortgage?
The advantage of a fixed rate mortgage is that it never changes. If it’s locked at 3%, it stays there in good economic times and bad. The issue with an adjustable rate mortgage is that you’re at the mercy of the market. If it’s in good shape, you can reap serious money-saving benefits but the second the market turns, your rate could skyrocket. Adjustable rate mortgages are a gamble. Whichever one you choose should be based on your comfort level with money fluctuations.
Is refinancing a good idea?
It depends. Most people refinance to save money by lowering the interest rate but a refinance also means that you’ll have to complete the buying process all over again complete with closing costs, corporate law firm and attorney fees, etc. Be sure to crunch the numbers carefully before you refinance.
What happens if I can’t pay my mortgage?
Many lenders won’t take partial payments and if you’re in danger of defaulting on your home loan it’s best to discuss your options with the bank or lender right away to avoid foreclosure. It also helps to hire a lawyer through a corporate law firm to protect your rights and work on your behalf.
What happens in a foreclosure?
Foreclosures happen in stages which start with the bank declaring that you’re in default on your home loan. After that, you’ll receive what’s called a Notice of Acceleration in which you will be asked to pay the loan off in full to avoid foreclosure. If you cannot, then a Notice of Sale follows and the process ends with a public auctioning of the house.
If my house if foreclosed on, do I have to move out right away?
No. If your home is foreclosed on and sold at auction, then you become a tenant of the new owner and it is up to them to follow the proper legal channels to evict you.
No one ever wants to go through a foreclosure but in these difficult economic times it may happen. The best thing to do is to decide if you can continue to pay your mortgage and hire a corporate law firm to help protect you.
This article was written by Brent Hatcher, a banking and corporate finance lawyer, on behalf of Smith Gilliam Williams & Miles, a leading Atlanta Law Firm.
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