Friday, June 17, 2011
“Why use a mortgage broker?”
If you’re in the market for a new mortgage, whether it be a purchase money mortgage or a refinance, you may be wondering how to go about it all.
Assuming you’ve heard the phrase “mortgage broker” thrown around, you may also be curious why anyone would use a mortgage broker.
Mortgage brokers have access to wholesale mortgage rates, which are priced below those offered by retail banks.
They’re able to offer lower mortgage rates because they don’t need to pay a sales team to sell those rates, as mortgage brokers run their own businesses and earn money off commission (yield spread premium).
That said, you may be able to get a better deal if you work with a mortgage broker as opposed to walking into your local bank branch.
Not only that, but mortgage brokers have the ability to “shop your rate” with multiple mortgage lenders simultaneously, meaning more options for you and less legwork.
Finally, a mortgage broker may be able to provide better customer service than a giant, faceless corporation.
Many mortgage brokers are mom-and-pop shops, so it’s easy to get someone on the phone or speak in person.
They also tend to hustle a bit more with their commission on the line.
Concerns about Refinancing
Just as with the creation of any other new loan there are fees associated with refinancing your home mortgage. Depending upon how long you have been paying on your current loan, the interest vs. principle pay down will be a consideration. With a refinance, which means taking on a new loan, the bulk of your payment will once again go towards interest.
You also have to consider how much longer you will remain in your home. If you are going to save $1,400 a year by refinancing, but you have to spend $4,200 to get it done, then you will have to own that home for more than three years to realize any savings on that level.
Regardless of any of these concerns, if your situation is correct, you can save a ton of money by refinancing your current home mortgage loan. Do the research and do in now by comparing mortgage rates with us, time is of the essence and it may not be in your favor, but why?
If you want to see if Refinancing makes financial sense please reply via email with the following information
1. Current Interest Rate
2. Current Loan Balance
3. Idea of Home Value from Assessment or Recent Appraisal
4. Current Monthly Payment
5. Yearly Taxes
6. Yearly Homeowners Insurance
7. Idea of Credit Score or Rating Fair-550-620 Good 620-680 Excellent 680 and above.
By sending an email back with the above information, I can then forward you an accurate idea of what your new payment would be if you decided to refinance. Not 1 phone call unless you prefer to discuss further.