Help!!!!!!! I need help with mortgage brokers information
Help!!!!!!! I need help with mortgage brokers information
O.k., here is what I've gathered so far in my search for information
on how to get the best mortgage:
1. Banks are better to go to for a mortgage than a mortgage broker.
Banks pay their people a flat fee, so they don't have an incentive to
add "junk" fees for you to pay. Whereas a mortgage broker wants to
keep
adding fees so he can get a bigger commision from your loan.
2. Buy the discount points so your loan is cheaper in the long run.
Discount points are tax deductable.
3. You need to establish some good credit to get the best deal.
4. You should question all the fees to see if they are neccessary.
Walk away from it if they are trying to nickle and dime you to death
with
fees, fees, and more fees.
5. If you don't put 20% down, you will be required to buy Private
mortgage
insurance. (PMI) With an FHA loan, the PMI can never be cancelled.
With a regular loan, once you reach a certain stage in your payments,
you can cancel the PMI.
6. A 15 year loan is much better than a 30 year loan, even though
your payment will be a bit higher, you will get a better interest rate
and save much much more. 55% more.
7. Paying bi-weekly, rather than monthly, you save a lot of money on
the interest, even though you are paying the same amount. And if you
can add a little extra to the payments, you will save a great deal
more. Specify that the extra amount be applied to the principal.
8. Watch out for the bank, or mortgage broker changing the terms of
the loan to get you to pay more in fees than what was previously
agreed upon. They usually like to spring it on you on the day of
closing, so I would call them every week or so to make sure there are
no suprises on closing day!!!
9. Ask to see a list of ALL and I repeat ALL the fees that you will
be required to pay to get the loan. What mortgage brokers like to do
is show you only their fees to sign you up, and then mention that
there are other fees that you must pay to other people who are
neccessary to get the loan.
10. If a mortgage broker does not charge you a fee or closing costs,
that means that he will get his money from the lender. For him to get
that, it means that he added 1% to your loan. If you borrow $50,000
dollars, that extra 1% is $500 dollars for one year. Lets say you pay
on the loan for 20 years, that comes out to $10,000. The lender is
more than happy to send him a check for $3,000 since he is making them
an extra $7,000 in profit!!!
These are just some of the things I'm finding out on here. Am I wrong
on any of them? Can you add to the list something that I didn't
mention?
Please add to the list if you know something more.