Residential Mortgage Application: Considering Payments

When you are filling out a residential mortgage application, you should take some time to consider how much you are going to be paying on your monthly mortgage payment. You do not want to get a mortgage payment that is beyond what you can afford every month. This is not going to be a temporary burden that you will have to take care of. In most cases, you are going to be stuck with this payment for the next 30 years.

When you are working with a lender, you may be tempted to look only at your mortgage payment. While the mortgage payment is very important, this is not the only thing that you want to consider. There are many different ways for a lender to alter your payment so that it is more affordable. For example, if a fixed-interest-rate mortgage is going to give you a payment that you cannot afford, the lender might suggest that you take on an interest-only loan with a more affordable payment. However, this puts you at an increased risk because you are not going to be addressing the balance of the loan. They could also offer you a longer term, such as a 50-year mortgage, to help lower your payments.