Busting your mortgage misconception in seconds!

Are you planning to buy a new house on a mortgage? You’re on a right track, as it is a great way to save money on your deposit and attain the best loan term and home loan rate that fulfills all your needs. In this article we will touch all the misconception about Residential mortgage broker.

Interest rates reflect the cost of your mortgage

The true expression of your mortgage costs is your annual rate. This includes interest rate points, mortgage insurance and other fees.

Mortgage rates are published only once in a day

Mortgage rates change very often throughout the day. Due to the irregular nature of interest rates and the ability of financial institutions to direct what they offer, it is essential to find optimal interest rates.

Broker charge the same fee according to the law

The law does not require lenders to evaluate and charge the same fees for services such as credit reports. Some financial institutions exempt these fees, while others can charge higher fees. So it is best to visit the market and do you research to find the best offer for yourself.

You can’t change your pre-approval broker

Pre-approval is a contract on the condition that the financial institution estimates the amount of the mortgage loan on your behalf. That is, it includes credit checks and confirmations, but does not bound you. There is no obligation to stick to one Residential mortgage broker. It is wise to get some citations before deciding on one.

You can find the best interest rate with anyone

Some banks offer benefits with mortgage, but that doesn’t necessarily mean you can get the best rates with them. The only way to know if you are getting the best deal is to get quotation from multiple financial institutions and choose the one that suits your needs. This is one reason why it is best to work with a Residential mortgage broker. He does the hard work of comparing your options to find the right option for you.

A home loan with a partner requires impartial review of your credit report

People who are new visitors fo the market are misunderstood that both their income and that of their partners have equal impact on their credit report. However, it is interesting to know that if both have lower the credit scores, then it will significantly determine monthly payments regardless of who the primary and secondary borrowers are.

The deposite comprises of 20% of the total loan

A common misconception is that you have to pay a deposit of 10%, 15%, or even 20% of your home. This isn’t true, as with Residential mortgage broker the least deposit you can pay is 3.5%. This is a great option for buyers who cannot pay large down payments.

Is your mortgage “underwater”? You cannot refinance!

If your mortgage is underwater, it means that your home is worth less than your mortgage. This should not prevent you from considering refinancing your home for several reasons. You can get a refinancing using one of two special government programs. Both programs can help homeowners refinance to low interest rate loans and help significantly reduce borrower payments.

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