When shopping for mortgages, there’s a tendency to focus on just one variable: the interest rate and most Mortgage broker focus on that. However, to make sure you’re getting the best deal on a mortgage, you’ll want to take a deeper look at both the offer and the lender behind it.
The APR: What’s in a Number?
When comparing rates, you can’t simply rely on the annual percentage rate (APR) as the indicator of how much the mortgage will cost you.
Theoretically, the APR is supposed to reflect all the costs associated with a loan and make it simple to compare offers from different institutions. Unfortunately, lenders have a lot of flexibility in deciding which fees to include when calculating the APR. That means it’s easy for some to conveniently omit a few charges and make their APR look lower than competitors.
For a deeper dive into the expenses, ask to see the Mortgage broker‘s loan estimate, formerly known as a good faith estimate. It’s an itemized list of all the fees they’ll charge you, including those that may have been factored into the APR calculation.
How Long Does the Rate Last?
There are two basic types of mortgages: fixed rate and adjustable rate. As the names imply, a fixed-rate mortgage locks in your interest rate for the life of the loan, while the interest on an adjustable-rate mortgage (ARM) is normally fixed for a limited amount of years, … [Read the rest]
The purpose or role of mortgage brokers isn’t always clear. There are many who believe a broker is only there to help with choosing a mortgage but that isn’t entirely true. They do so much and they are actually some of the most important services to have on your side when buying a home. However, what are the purposes of a mortgage broker?
Finding and Selecting a Mortgage
Most people think a broker is there for one thing – to find a mortgage – and yes while that may be true, they are also there to help find a suitable mortgage. Any lender can offer a mortgage but selecting the one which is most suited to your financial needs is extremely hard. That is why mortgage brokers are used and that is their sole purpose. They don’t just find any mortgage but one which doesn’t stretch your budget to its limits. The broker can also ensure you are able to obtain the mortgage and find one with the lowest interest rates also.
A Mortgage Broker Melbourne Can Advise You
To be honest, mortgage brokers are necessary and needed for a variety of reasons and one of the biggest purposes of using a broker is to ensure you are advised properly. Now, when you are looking for a mortgage you have very few options to consider when you need to understand things a bit better. It is a complicated matter because … [Read the rest]
There is a misconception that mortgage brokers are pure evil! Yes, you did read it right and unfortunately thousands of property buyers don’t use the services of mortgage brokers. As a result they struggle to find a mortgage that works for them. However, too many people don’t realize that brokers aren’t as evil as you are lead to believe and can in fact be a great friend to you.
Mortgage Brokers Can Help Find a Suitable Mortgage
When you look into a mortgage broker Melbourne you are going to find that they can help you find a mortgage which is suitable for your budget. The broker doesn’t just go on the amount of money you are making now or the amount of money saved in the bank but also the credit history too. All of these are combined by the mortgage broker and analyzed so that they can understand what monthly payments each individual can afford. The brokers have the ability to use a variety of tools to established how much you can pay and which mortgage will be more suitable for your financial needs.read review here!
They Are Fully Trained
Too many people forget that all licensed brokers are fully trained and certified. Now, this might not mean a lot to you but this can be a certificate of assurance. When a person is licensed they have gone through a vast training program and are qualified to help … [Read the rest]