Follow us!

    Re: mortgage contingency clause/prevailing interest rates

    Posted by steven on 12/15/08

    On 7/10/07, Kenneth C. Krause wrote:
    > The printed "broker drawn" contract contained the phrase
    > "prevailing interest rate" in the mortgage contingency
    > clause. I claim this protects the purchaser and he need not
    > take a mortgage beyond the current prevailing rate range (
    > in this case 61/2- 7&37;. Any thoughts would be greatly
    > appreciated.

    Since most home loans are for a period of 30 years, if you
    want a payment you can count on for that long of a period of
    time, a fixed rate mortgage may be what works best for you.
    Once your loan amount and interest rate are calculated and
    locked in, a fixed rate mortgage will guarantee that you will
    have the same payment over the life of the loan. Making extra
    payments to principal will allow you to pay your loan off
    sooner mortgage lenders

    This may not always be the best choice, however. If interest
    rates are very high at the time you take out your loan, with a
    fixed rate mortgage you'll be stuck with that high interest
    for the life of the loan (unless you choose to refinance).
    Conversely, if interest rates are very low, you'll come out
    the winner with interest rates that will stay low no matter
    how high interest rates go in the future.

    mortgage lenders

    Posts on this thread, including this one
  • mortgage contingency clause/prevailing interest rates, 7/10/07, by Kenneth C. Krause.
  • Re: mortgage contingency clause/prevailing interest rates, 12/15/08, by steven.

  Site Map:  Home Chatboards Legal Jobs Classified Ads Search Contacts Advertise
  © 1996 - 2013. All Rights Reserved. Please review our Terms of Use, Mission Statement, and Privacy Policy.