We have all seen the mortgage calculators out there but how do we know they are accurate? So may numbers go into that equation who knows if the loan officer is working you over (most are great, but I have seen bad ones)? There is a "rule of 6" in the industry and it will work as a good benchmark for mortgage payments. The initial cost of the loan can range from 1%-3% of the mortgaged amount, the loan officer will charge this as a fee to get the loan. The initial cost will be worked into the closing costs of your house so you won't notice that as much as the actual payment. The "rule of 6" refers to the fact that a 6% loan will cost $6 per thousand on the loan. For example $100,000 loan (there is 100 - 1000's) would be 100 x 6 = $600 per month. 6% is a little high for today's times but it is good to know that if you are paying more than 6 dollars per thousand there may be a problem.
Ben Strom
(763) 221-9773
Ben@fishMLS.com
www.TheStromTeam.com
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