There are many lenders out there who promise you low rates and seemingly “too good to be true” deals. You should be very careful of these. Many of these lenders try to lure uninformed customers in through their predatory marketing but attach additional costs and compounded interest rates. Unfortunately, many Americans have fallen prey to these lenders and have consequently defaulted on their home mortgage payments.
So how do you avoid these predatory lenders? First of all know how mortgages work. Make sure to ask about whether the interest is ballooning, fixed or adjustable. Once you figure this out, calculate your actual payment due at the end of your contract. Ideally you should shop around and pick the lender which offers you the lowest total mortgage payment. You should also consider the monthly payments and how interest is compounded on these monthly payments.
This process is complicated and often times overwhelming for those without a background in finance or knowledge of interest rates. If you need help, you should contact a loan modification attorney with a loan modification department to help you negotiate the best loan possible. Negotiating the best mortgage plan may just be the difference between foreclosure and keeping your home.