When any particular lender offers you a mortgage, you will have to repay both the original loan amount plus interest through monthly payments. The interest is the biggest cost that you have to incur on a mortgage. A good deal on a mortgage is one that offers you a lower interest rate and easy repayment terms.

Hiring a mortgage broker is a good option if you are unfamiliar with the process involved in taking a mortgage and don’t want to spend a lot of time in understanding the nuances of this industry. A mortgage broker can advise you on how to go about getting the loan and can also give you a fair estimate of the charges that will be added by the lender. A mortgage broker can also point out any pitfalls in the fine print that you need to be aware of, and help you find the right lender for your needs quickly, and with minimum effort from your side. As the broker would already know many of the lenders, they will be able to negotiate a lower mortgage rate and easier terms on your behalf.

A fixed rate means your mortgage will always have a pre-determined interest rate irrespective of the changes in the economic conditions. On the other hand, an adjustable rate can be changed by the lender whenever he feels that the economic conditions have changed.

If you are seeking stable monthly payments and do not want to be dealing with uncertainty, it is advisable to go for a fixed rate mortgage. But if you have sufficient financial cushion to absorb any increase in your monthly payments, and if you feel that interest rates are likely to go lower in the near future, then an adjustable rate mortgage might be a better option for you. It’s a good idea to request help of a mortgage broker or your financial adviser before you finalize a deal.

A change in the repayment terms of a loan is referred to as loan modification. Such changes are usually sought by home owners to make their loans and monthly repayments more affordable. By revising the terms of the loan, the lenders can create alternatives to resorting to foreclosure when the borrower defaults on monthly installments. Here are some FAQ for people considering modification of their loan terms.

It is often questioned if the mortgagor will qualify a person for a loan modification when he/she or the spouse is unemployed. The lender will be required to conduct a financial review of the total income and expenses of the household of the mortgagee to figure out whether the current household income is enough to make the modified mortgage payments or not. Once the mortgagor has satisfied himself with this condition, he can consult with a legal counsel to determine whether the mortgagee qualifies for the loan modification or not.