Stop throwing your money away

Three Ways In Which A Mortgage Broker Saves You Money

Before you start house hunting, even before you begin looking for a mortgage lender, you may want to see a mortgage broker instead. A mortgage broker can do more for you than you can do on your own, including saving you a lot of money. Here are three ways in which a mortgage broker saves you money.

The Broker Looks For and Knows the Lowest Interest Rates

A big part of your mortgage loan is the interest. The higher the interest rate, the more interest you will pay over the life of the mortgage, which can double or triple the final purchase price of your home. To avoid making payments that exceed the purchase value of your home, a broker can find the lowest interest rates available to you. He or she already knows many of the lenders that offer low interest rates, but can find additional ones that are willing to back your mortgage loan at the interest rates you want and need.

The Broker Can Negotiate Repayment Terms

Now let’s say that the broker has found a loan with the interest rate you want, but the repayment terms do not suit you. Guess what? The mortgage broker can negotiate or renegotiate the repayment terms for you. You do not have to haggle with the lender all by yourself (which usually does not work out well anyway). It is similar to having a lawyer construct a plea deal for you, only the terms in a mortgage contract work out much better for you than most legal proceedings and plea bargains would. For example, instead of a massive balloon payment at the end of fifteen years when you know you will not be able to repay that much, you can stretch out the final balloon payment to twenty, twenty-five or thirty years or even eliminate the balloon payment altogether so that you can more effectively budget your finances.

The Broker Can Set Up Payment Accounts for You

If you currently do not have a checking or savings account, it is possible to establish one just for the sole purpose of paying your mortgage. In fact, some lenders may be willing to reduce fees or interest rates if you are willing to pay by direct withdrawal from an account every month. Talk to your mortgage broker about how to set these accounts up so that you do not pay any extra fees for their use. The broker might have client accounts which he or she already uses to manage payments through his or her own business accounting system, and therefore might be able to assist you with this.