Home › Forums › Mortgage › How mortgage brokers rip you off – rephrase to – What do you need to be careful about while consulting a mortgage broker?
- This topic has 1 reply, 1 voice, and was last updated 10 months, 2 weeks ago by Geoff Massanek.
-
AuthorPosts
-
December 24, 2023 at 4:14 pm #28678Geoff MassanekModeratorDecember 24, 2023 at 4:24 pm #28740Geoff MassanekModerator
Consulting with a mortgage broker is a great idea if you’re planning to buy a house because it’s their job to connect buyers and lenders while negotiating the best mortgage terms. However, you should keep a few things in mind when consulting one.
Mortgage brokers generally get paid 1%-2% of the home loan amount. Either the borrower or lender pays this amount. It may seem better to let the lender take the burden of paying the mortgage broker, but the broker may get a higher fee for negotiating a deal with higher interest rates. This means you may end up paying more interest throughout the loan period. While you may end up spending more upfront, it may be worth it if you’re getting the lowest interest rates.
Even though it is primarily the broker’s job to shop around and present you with the best mortgage deals, you will benefit from doing your research too so that you can negotiate to your benefit. You could also ask for a guarantee that the loan terms will fit your requirements – like the interest rates and other closing costs. Many brokers may be willing to let you get a loan based on these terms.
-
AuthorPosts
- You must be logged in to reply to this topic.