Irrespective of whether you are purchasing a home for the first time or you're interested in refinancing your existing house mortgage to get a better deal, you need to at least have a good general knowledge of mortgages and loan refinancing when you speak with lenders. This article will cover some of the general aspects of home mortgages and loan refinancing as an introduction for those individuals who are first time home buyers or those who have an existing mortgage and are looking to refinance their existing mortgage in order to reduce their monthly payments.

Mortgaging is a complicated procedure and will always require some professional services no matter what you do. When doing anything that has to do with home mortgages or loan refinancing, it's always a good idea to find a reputable attorney or real estate broker who knows the ropes.

The home mortgage marketplace is full of myths, half-truths, and faulty interpretations that result in overpaying thousands of dollars. Doing your homework and researching mortgage offers will help you avoid most of the bad mortgage advice out there. Just the thought of buying a home can cause anxiety in some people. For many people, it is the fear of the unknown that brings this about. One of the unknowns is usually based on not knowing what types of questions the lenders may ask of you during the mortgage application process.

The business of house mortgages and loan refinancing can be down right bewildering specially when confronted with interest rates, what type of home mortgage is best...should I go with a fixed rate or should I consider adjustable rate mortgage (arm). Do I need mortgage insurance? The list is endless. The banking language used by mortgage specialists will seem like a foreign language to you if you aren't somewhat familiar with the terms.

The main point here is this, if you are looking for a new home mortgage and you have no idea of what the mortgage terms mean consult with a professional first.

By all means, the worst thing you can do is get hooked into the wrong type of mortgage that will not meet your expectations and your goals for the future or risk losing the roof over your head because you can't make the high payments.

My advice is this...before you ever sign a contract and get obligated for years, know what you're signing and the consequences of your house mortgages contract. Many people when they visit a financial lender just assume that mortgage lenders will give them the best deals on their new home mortgage or refinancing terms that will be in their best interest...that's not always the case. You need to be get informed so that you can talk intelligently when sitting at their desk. Find yourself a good mortgage broker or real estate attorney or take the responsibility yourself and get informed!

For example "What is a mortgage?"

"When a mortgage contract is signed, it is a legal and binding contract stating that you have agreed to use your new asset as security for the money you are borrowing. Once you sign the mortgage contract, the mortgage lender holds the deed to your home or whatever you provided as assets. They will hold this until the debt is repaid in full including the original principle and any interest that you originally agreed upon.

Should you not be able to make your mortgage payments, the lender has the right to sell the property".

So...regardless of whether you are a first time home buyer, have already purchase a house and you are thinking about re-financing, seeking an equity loan, or even a reverse mortgage - there are a lot of thing to consider... as an example - do you choose fixed rate, variable rate, adjustable rate - or interest only.

Mortgage interest rates and fees that are involved with any mortgage can all vary between mortgage lenders. You need to be familiar with the language and put it to good use. By getting informed and doing your homework, you can save yourself a ton of money over the course of your mortgage loan.