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How Not To Be Ripped Off By Mortgage Brokers
One of the things that bothers me about the mortgage industry is the number of unscrupulous brokers that operate in this market. Talk about giving the industry a bad name! I worked for a mortgage lender until quite recently and I used to be shocked at the fees that brokers charged their clients. I mean lets put this whole "mortgage arranging" thing into perspective. Assume I am meeting a client today. The guy walks into my office and sits down and has a chat with me about getting a mortgage. It appears that he is not a "clean" client as he is suffering from a few credit problems. Well, I stroke my chin and let out a couple of sighs but wait, I CAN HELP HIM. I tell the client that it is going to be difficult but I think I can help him. There may be a few "fees" but hey, at least he is going to get a mortgage and that is all he cares about isn't it? So, he needs to borrow £150k. Because of ALL the work I am going to have do I am going to charge him a competitive fee of 3% of the loan amount. That's right, £4,500!. But, he does have credit problems and he is going to get a mortgage and that is all he cares about right? Oh, and the £4,500 doesn't have to be paid upfront because all we will do is add it onto the loan amount. So that's ok ,right? NO,NO,NO. Ok I am talking about a hypothetical situation but this is one that is repeated everyday throughout the UK. In my opinion it is nothing more than robbery and shows scant regard for the clients wellbeing. How can anyone justify charging that to a client that will already have to pay a higher interest rate than a clean client would. So, to recap, the £150k loan now becomes £154,500 and that is before you even get to the solicitor and arrangement fees, let alone the Mortgage Indemnity Premium (MIG. So, the rule of thumb here is a simple one. Ask your broker to justify their fees and if you find anyone charging a fee of more than 1%, walk away. Quickly. Mark Anthony Harrison has worked in the Financial Services sector for over 16 years, many of them spent working for a mortgage lender and more recently with his own mortgage and finance brokerage. Visit him at http://www.capitalmortgagesolutions.co.uk
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When you're shopping for a new home-especially for the first time-all the terms and expressions may be confusing and difficult to understand. Adjustable rate, fixed rate, balloon payment - how do you decide which is the right type of home mortgage for you if you're not even sure what each of them are?The name of the mortgage type usually has to do with how you'll pay for your loan - how the interest on the loan is being determined by ...
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There are many benefits to interest-only mortgage loans. There are many situations where an interest-only mortgage loan could be best for you.Here are some of the situations where an interest only mortgage loan might be beneficial to you:1. If you are in a situation where your income is sporadic and would rather have the option of paying as little as possible sometimes and the...
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Home Loan Confusion Continues
Unfortunately, most Americans still do not understand how home loans work and how to take advantage of the wide array of programs available. The way I see it, people are still confused about mortgages in general and real estate finance, in particular.Just last week, a friend of mine told me he was buying a house. He was pre-approved for a loan, he said, and I was very happy for h... |  |
| Home Equity Loan Tax Deductions
Interest - is an amount you pay for the use of borrowed money.Several lenders are currenty offering amazing deals for 125% home equity loans. As highly advertized as these loans are they don't highly advertize that the interest payments on these loans are not neccessarily fully tax deductable.To understand why these interest payments don't qualify as tax deductable lets look at what is considered a tax deductable interest payment. The IRS website states that to be considered for full tax deductable interest your mortgage must fall into one of these three catagories:Mortgages you took out on or before October 13, 1987 (called gr... | |
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| The Best Way To Get The Right Mortgage
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| Mortgage Reduction Solutions
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| The Zero Down 80/20 Mortgage
This is an excellent loan for those that are lacking the down payment required for other types of mortgages.The 80 20 mortgage is simply two loans for 100% of the purchase price. It is a first mortgage at 80% of the purchase price with a 20% second mortgage.If you are a conforming borrower, doing your loan in this manner will save you from having to pay mortgage insurance. Mortgage insurance is almost always required when you have less than 20% down. But with the 80 20 loan you avoid this necessary evil.If you are a sub-prime borrower, doing you loan in this manner will typically keep your interest rates ½% to 2.5% lower than doing a 100% one loan. A 100% one loan is simply one loan for the entire purchase pric... | |
| Home Loans -- The Hot New Product? The 30-year, Fixed-rate Mortgage
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| Buying A Home After A Foreclosure
Buying a home after a foreclosure is not an impossible task. With some careful planning and some savvy shopping, you can secure a mortgage loan even with a foreclosure in your credit history.Wait At Least Two YearsMortgage lenders focus on the last three years of your credit history when they consider your mortgage application. It is best to wait at least two years after a foreclosure. However, if you have a large down payment or a fairly good credit score, lenders sometimes make exceptions.Save A Down PaymentOne way to improve the terms of a mortgage loan is to have a down payment. A credit score of 600 or low... | |
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