Tag: Mortgage Brokers

Some Money Saving Mortgage Tips

Buying a house is a great long term investment. If you’ve never had a mortgage payment, it simply means you’ll have to be more careful regarding the management of your finances.

The first step before venturing into a mortgage if you’re not already in one, is to consider your financial situation. Then decide to buy a home where the mortgage and down payments meet your financial situation, so that you can enjoy life and have a roof over your head at the same time. If you have no idea what your monthly budget can afford then you should take some advice from a finance professional first.

Regardless of your situation here are several ways to reduce your monthly mortgage payments:

• As interest rates keep on changing you should keep track of changes and consider refinancing at the right time. This will reduce your expenditures. Do the calculations to know your savings after paying closing costs and other expenses. Closing costs can be added to your new mortgage to avoid out of pocket expenditures, while still saving you money.

• Check your monthly mortgage statement properly and regularly to make sure that all adjustments are made correctly; even banks sometime they make mistakes.

• Choose a mortgage that offers flexibility. You want a mortgage that allows you to pay in an easy way according to your earnings.

• Consider biweekly payments or accelerated equity plans. This will give you an additional payment each year and begin to reduce your mortgage quickly right from the start.

• Consolidate all your loans into a single one with lower monthly payments. Make a table and analyze all your loans; education, car, home and bank loans for example. Study your expenditures. Try to consult a mortgage specialist, ask him or her about debt consolidation, and how much it can reduce your monthly payments.

• Go for a 30 mortgage. This will allow you to pay lower monthly payments, which will lower the amount of interest you pay. Make sure there is no prepayment penalty on your loan, because the best move you can make is to pay way more each payment than the minimum. Each time you do this you’ll be reducing the principle of your mortgage.

A mortgage or home loan is a long term debt but it doesn’t have to be a burden. You are advised to pay it off as soon as possible but arrange your budget tactfully by keeping an eye on insurance, loan disbursements and their interest rates. Enjoy your new home; hopefully with a few of these tips it will be all yours sooner than the banks desire. Remember, if it’s paid for it’s yours.

Top 10 Reasons to Use a Mortgage Broker vs. a Bank Lender

Back in 1987 when I first started in the mortgage business, mortgage brokers were a new phenomenon. Most people who needed a mortgage simply went to their local bank and acquired a “one size fits all” mortgage. Back then, clients would ask me what a mortgage broker does, if it costs more to use us, and what the benefits of using our services were.

Times have changed; approximately half of all mortgages are no longer being originated by bank lenders. Depending on the type of home loan you are seeking, you could save yourself thousands of dollars by shopping various lenders for your home mortgage needs. Therefore it is imperative that you know the difference between a mortgage broker and a bank lender.

Below are the Top 10 reasons why you should use a mortgage broker instead of a bank:

1. Mortgage brokers specialize in home loans and are commission based, so it is in their best interest to get you the best rate possible, or they don’t get paid.

2. Mortgage brokers have an exceptionally large network of lenders that they work with to get you the most favorable mortgage rates and terms. Put it this way, the more lenders you have competing for your home loan, the more you save.

3. Mortgage brokers are able to work one-on-one with each individual client, evaluate their specific needs and find a lender that suits them personally. Next, the broker submits the request to one or more lenders, and when the request is accepted the broker works closely with the lender until the home loan closes.

4. They can often times find a lender who accepts home loans that the bank foregoes. Mortgage brokers are also able to discuss a lower interest rate from lenders in trade for bringing in business.

5. Mortgage brokers save you the groundwork of finding the best mortgage rate and terms for your specific needs.

6. Banks on the other hand deal with all types of loans, and may not have the specialization in home loans that a mortgage broker has.

7. Bank loan officers process mortgage loans originated by only their employer.

8. Loan officers at a bank are often limited to certain home loan products, guiding principles and criteria that they must follow. This can limit the home loans available to you.

9. Regardless if you choose to have your home loan with that particular loan officer or not, they are still getting paid a salary. With this in mind they may not be looking out for your best interest.

10. In most cases, you not only will not pay more for your mortgage using a mortgage broker, but instead will pay less.

If you are ready to finally purchase your dream home or to refinance, give yourself an edge, and use a mortgage broker like us to to get you the best deal possible at the lowest possible rate and cost.

Why Using a Mortgage Broker Can Save You Money

Mtg Broker

Being able to get the house you want should make you very happy. But what if, after you move in, you find out that you may have been able to get a much better financial deal than what you got? Would you still be as happy? It is quite possible to get the best deal in the first place by using a mortgage broker.

Here is how a mortgage broker can save you some money.

It needs to be stated from the start that a mortgage broker will not always be able to get you the best deal, but could, probably, in most cases. Too many people are still accepting the first offer they are given for their mortgage. Getting that good deal, however, takes more than just comparing loans.

A bank lender will only be able to offer mortgage products that their own bank creates. These products, of differing values, are limited.

Sometimes a lending agent may not want to compare the different products his or her bank offers in order to find an exact match for your needs. At other times, a bank agent will work very hard for you.

A mortgage broker, however, only gets paid when a sale is made – in other words – when a mortgage is signed. This means that it is in their best interests to get for you a highly competitive deal.

Mortgage brokers deal with many different lending companies on a regular basis and know what each of them have been willing to do – in the very recent past. When you contact a mortgage broker, there often will not be any fees. They will then get your information from you and send it to  companies they think will give you a very competitive offer.

Another benefit comes from the way that mortgage brokers perform their services. A banker will give you a more institutionalized service, and your interaction with him or her will be more formal.

A mortgage broker, however, will be glad to take more personal time with you, making you feel more welcome and will probably spend more time with you and for you. In fact, he or she may even come to your house.

Mortgage brokers have access to mortgages at a slightly lower price than a banker might provide. This is because they deal with wholesale prices rather than the retail. Their service offered to lenders means a savings for the lender because the lender does not need to maintain sales staff – except when a sale is made.

When there may be a problem with your credit, the value of a mortgage broker can really be seen. Because they know many different lenders and each of their specialties, they can work to find lenders that can give you a great deal.

They would already know which lenders regularly give money to those with bad credit – or whatever special need you may have. A bank representative, however, while still able to offer a number of products, is limited to only what their branch offers and the special deals they give.

And that’s why using a mortgage broker can save you money!

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