Take care when shopping for that perfect mortgage

A recent Los Angeles Times article said that while the current options available to American homeowners who are looking to refinance their mortgages have benefitted many, they could have received even better offers had they taken the time to shop around and play the field.

According to a Harris Interactive survey of 1,380 homeowners, while nine in 10 American adults compared prices when shopping for big purchases, less than half of homeowners did the same when shopping around for a way to refinance their mortgages.

LendingTree Chief Executive Doug Lebda said that it's okay for borrowers and lenders to negotiate with one another, and that while the mortgage process can seem overwhelming, it's okay to walk away from a prospective deal.

"Consumers need to be engaged," Lebda said to the news source. "A lot of them are just happy to have it over with rather than hang in there to get the best deal."

Furthermore, real estate agents and brokers say that with the summer months coming to a close, home sales will likely see a boost. The National Association of Realtors reported that a recent survey from ERA Realtors found that 20 percent of brokers and realtors believe that buyers' desires to be in a new home for the holidays will push them to move. Additionally, 10 percent said that the main motivating factor will be individuals wanting to complete purchases by year's end in order to take advantage of the tax benefits of home ownership.

It's crucial for both sides to be satisfied when a home loan is created. Lenders should use loan amortization software to ensure that they are instituting the best repayment plan for the borrower. This will help to keep the mortgage within the range of the homeowner and also satiate the needs of the lending party.