Discover The Best Value Mortgage For Your Money.

Posted by Nick Niesen on October 29th, 2010

A mortgage or loan varies according to:

The amount borrowed;
The interest rate;
The type of rate (fixed or variable);
The term (length in years) of the loan;
Discount rate for X number of years;
Deposit (downpayment);
Associated fees (broker, origination, prepayment etc.);
Local or national taxes;
Insurance required by the lender.

Your best way to find a sub-prime lender is to search on the internet. The internet allows you to find and compare multiple lenders so you can get the best rate. Don't get too caught up in comparing APRs and various special offers; what's on the site may not reflect what _you_ will get if you apply. Everything depends on your financial circumstances.

How is your credit rating?
What is your credit _score_ (the in-house lender's rating of you)?
Do you have a bank account, and for how long?
How long have you been in your current job?
How much do you earn per year?
What outstanding debts do you have?
What are your monthly outgoings?
Do you have enough money for a fat deposit?

This latter criterion is crucial. If you can save up to 15-20% of a property price as a down-payment you become startlingly more attractive as a borrower.

Why?

Because if you default the lender can always sell the house, take a hit on the sale price, and still make a profit, because you've already paid a fat wad upfront for the place.

TIP: Only pay up-front fees to well-known or highly recommended lenders. While most lenders are reputable, it is always best to be cautious.

If I were looking for online mortgage loans, I'd widen my horizons. What do you want? Money. How does one get more money? By:

- Getting a second job or paying hobby;
- By scrounging from friends or family;
- By selling an unnecessary asset, like a flash car;
- Getting a different job that pays better;
- By saving what you've already got - no holiday, give up cigarettes and booze for a while!

It's a small amount of initial hardship, versus years of fretting over barely-manageable monthly mortgage payments. Money and sex problems are two things that put a real strain on a marriage or partnership. The second is easy to fix, and the first not too hard either! An extra hundred beer-vouchers in your pocket per month can make all the difference.

Any online mortgage web site should have a Privacy Policy. What are they going to do with your data once they get it? In practical terms, you are on umpteen databases simply by existing. You can ease your aggravation with the cold calls by saying "I'm sorry, I don't want any financial products at this time, thank you, good day", and hanging up, four seconds into the conversation. Puts them on the back foot. Polite, but swift and direct.

Something to look out for in any mortgage web site is how old the site is. Is it a johnny-come-lately, or has it been around for years? Another thing is whether it has a physical bricks-and-mortar address: P. O. Boxes or 'Suites' don't count. Are they regulated by the Financial Services Authority? Do they have a Consumer Credit Licence?