The average price of a home in New Hampshire is approximately $ 130,000, and homes in New Hampshire have recently been appreciating at rates above the national average. Recently, New Hampshire has seen a spike in its population; in fact, it has had the highest growth in population of all New England states.
What to Watch Out for When Obtaining a New Hampshire Mortgage Loan
When shopping for a mortgage loan in New Hampshire, there are a few things you need to beware. This article addresses the three things you need to beware when looking for a New Hampshire home mortgage loan:
High Pre-Payment Penalties
Predatory lenders like to include things in their contracts that make it nearly impossible for you to refinance your loan. One of these things is a high pre-payment penalty. When you refinance your loan, you pay the remaining balance in one lump sum, and, if your contract includes pre-payment penalties, you'll have to pay that amount in addition to your principal balance. This could keep you from refinancing if you later discover that you've entered into a contract with unreasonable loan terms.
High Interest Rates
Even if you have bad or no credit, you should still be able to get a decent interest rate. Because home loans are secured, the interest rates are better than those on unsecured loans. Shop around before signing any contract. Make sure to know what interest rates other companies are willing to give you before choosing one lender, even if that lender swears that you will not find a better interest rate.
Typically, lenders will include an arbitration clause in the mortgage paperwork. If you sign a contract that includes this case, you forfeit all of you rights to take legal action on your lender. Therefore, if you later discover that you've entered into a mortgage with a predatory lender, you will not be able to take legal action to get out of the loan.