Mortgage Comparison Advice

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Mortgage Comparison Advice

Finding the right mortgage for your needs can be a very lengthy process but can save you potentially thousands of dollars. Doing a mortgage comparison on a variety of loan options can help to get the best deal that suits your needs. Here is an overview of some things you should consider with your mortgage comparison.

Choosing between Fixed or Variable Loans?

A fixed mortgage rate means that you are locked into a fixed interest rate. This can be fixed for a varying amount of time and this will affect the interest rate that you will be able to get. This can be an advantage when the interest rates are low and can be beneficial to know exactly what your payments will be for the length of the loan.

A variable rate can either go up or down until the loan is cleared. Most mortgage rates with adjustable interests start with a period of 7, 5 or 3 years as an introductory period.

During the introductory period the rate is fixed, after that period, they can change depending on various factors within the financial markets. Adjustable rates may offer lower interests but  you should consider whether the market is at a low point and if it is likely to rise. It is important to take an interest rate in too account before choosing either of the two. There are also some more sophisticated options on the market that allow you to fix a percentage of your loan whilst having the rest as variable.

Finding the best Rate that suits your needs

Although finding the lowest interest rate is vital you also need to consider other aspects of the loan for your personal needs. You want to consider the flexibility of your loan and find one that will allow you to make additional repayments when you have funds to do so and re-draw on that when you need to. There are constantly new loan products on the market and it is important to find one that has the features that suit your financial needs.

One of the main advantages to a mortgage broker is there access to many lenders. This makes the loans comparison process so much faster and easier. In addition to that it is not uncommon for a broker to get you a better deal than you would have been able to arrange yourself, their service are free to you and they have software that can electronically compare loans from a number of different lenders.

If you are in the Cairns region contact Cairns Mortgage Broker to find out more about loan comparisons.

 

admin / April 13, 2016 / Mortgage Comparisons / 0 Comments

Why NOT Using A Mortgage Broker Can Be The Worst Decision You Could Make

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Buying a home is by far one of the most important purchases you’ll ever make. Most buyers spend weeks, maybe even months looking for the perfect house. But when it comes to financing that purchase, all too often, the buyers are willing to take the first loan that comes along.

This mistake can cost thousands of dollars in over paid fees and interest over the life of the loan.

Many buyers make the assumption that if they go into their local bank, they are more likely to get a loan approved because they are a current customer. They may think that local bank are faster. Both of these assumptions are also costly mistakes.

The truth is that a savvy buyer pays more attention to the loan than they do the house itself.

What options do buyers have? What is the difference between the local bank and a mortgage broker?

To sum it up, the difference is CHOICE and OPTIONS.

When you walk into a bank, whether it be a small credit union or a well known, nationwide bank, you are negotiating with one employee that is authorized to make you a mortgage offer. They’ll pull one credit report and decide whether they want to offer you a loan or not. If they choose to offer you a loan, they’ll most often give you one set of terms, and you can take it or leave it.

Mortgage brokers, on the other hand, do not work for a bank.

They work for you, the buyer.

Since mortgage brokers do not represent any one bank, this works in your best interests. How so?

Let’s take for example a buyer with a very good credit score and a down payment. A mortgage broker can shop around, so to say, for you, with literally dozens upon dozens of different banks, so that you get the best offer.

If your credit is not that great, you MUST use a mortgage broker! It would take you countless hours to go to all the local banks applying for a loan, not to mention it would pull your credit down even further with all of the credit inquires! In addition, you wouldn’t even know about nation wide banks that are willing to lend. However, armed with your mortgage broker, they can do all of the work for you, and your chances of getting a loan increase dramatically.

Why can we say the NOT using a mortgage broker could be the worst decision as you buy a home? Simply put, because you need to hire a broker to get you the best loan. You DON’T need a bank employee that represents the bank.

Using a mortgage broker will save you money, time, and frustration. And at the end of the day, you’ll be able to feel confident that you made the right choice.

admin / April 13, 2016 / Mortgage Brokers / 2 Comments

Top 10 Reasons To Use A Mortgage Broker

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Top 10 Reasons To Use A Mortgage Broker

Why do you need to use a mortgage broker when shopping for a home?

If you want to reduce the work and stress of obtaining a mortgage, save money and get a great deal, you should really consider hiring a mortgage broker. Here is a look at the top ten reasons why.

  1. Mortgage brokers are experts in their field and work on commissions that are paid by the lender. The better the deal, the more they make.
  2. When you visit a bank, you can only choose from the options they offer. Working with a mortgage broker gives you access to a whole network of lenders who will be competing to give you the best deal.
  3. A mortgage broker will work with you personally to make sure you get the deal that is best suited to your needs. You do not have to worry about having to settle for a “one size fits all” loan.
  4. Your broker works for you, not for a lender. You can feel confident that he is on your side and is always looking out for your best interests.
  5. Negotiating with a lender can be a nerve-wracking experience for most people. Brokers are used to negotiating, so they can haggle to get you a great deal.
  6. Lenders frequently offer deals and promotions that can save you a lot of money. A broker will be aware of these offers and can bring them to your attention.
  7. Working with a broker lets you pre-qualify for a loan so that you can lock in a favourable interest rate. This speeds up the process and can save you thousands of dollars.
  8. Unexpected obstacles can arise during the application process, and dealing with these can be tough. Your broker can help you avoid these obstacles or deal with them as quickly as possible.
  9. Every time you apply for a loan, your credit history is checked. Too many checks can actually lower your rating. With a broker, you only need to have your credit checked once, thereby preserving your excellent rating.
  10. Brokers are paid by the lender, not by you. You never have to worry about getting a bill from your broker, no matter how great a deal he finds you.

This has kindly been supplied by Mortgage Broker Central Coast. If you need help with a mortgage and are located on the Central Coast of NSW make sure you give them a call.

 

admin / April 13, 2016 / Residential Loans / 2 Comments