In the US today more households have mortgages than ever before. In fact the chance of you having or knowing someone who is paying off their mortgage is greater than 50%. You would think that because they are so common most people would have a good idea on how they work. Surprisingly that is not the case, in fact the majority of people who are currently paying off their mortgages know little more than their monthly payment information. In this market it pays to be an informed consumer. So what should you know?

Mortgage advice number one what can you afford and how much do you need. Before you ever step into a bank or fill out an online application you owe it to yourself to spend some time to analyze what monthly payments you can afford and how much money do you really need. The best advice for this step is that it pays to overestimate. Over estimate your expenses and over estimate how much you will need. Inevitably unforeseen things will happen while you are paying off your loan and it is much easier to cope when you have a buffer.

Mortgage advice number two know your state laws. Many states have different laws guaranteeing you certain things. Some states even have subsidized loans depending on your situation. So before taking your mortgage it is good advice to take a look at your state or local government websites financial section. There you will usually find a simple and clear explanation on what option and regulations your state has.

Mortgage advice number three shop around. This step may seem obvious but most people are paying a higher monthly payment than they have to. When dealing with a broker or a bank makes sure you take a notebook and write things down. Dont be afraid to ask questions, you will be the one making the payments after all. Dont let yourself be swayed by the hype of a TV commercial or the convenience of the bank down the street. The best advice is to shop around for your mortgage. Check your local yellow pages, search online. I suggest you contact at least ten different places before you start to settle on a choice. This step can make the difference in thousands of dollars so take it seriously, and dont be afraid to negotiate the terms either.

Mortgage advice number four dont miss a payment. If you have taken my advice up to this point, you should never have a problem missing a payment. However, if something does happen and you see that you may not be able to make this months payment, take my advice acting sooner is better than later. If at all possible before you miss a payment contact your lender. Lenders are only looking to regain their money and do not benefit when you are unable to pay. For this reason you may often be able to work something out with them before things go too far. There are also a number of programs available today which may be able to help you before they thought of default or bankruptcy enter your mind.

If you follow this mortgage advice you should find yourself able to comfortably take out and pay back your mortgage with ease.