How mortgage brokers rip you off – rephrase to – What do you need to be careful about while consulting a mortgage broker?

Home Forums Mortgage How mortgage brokers rip you off – rephrase to – What do you need to be careful about while consulting a mortgage broker?

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    StellarFi
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    StellarFi
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    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.

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StellarFinance, Inc. and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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