Low Rate Home Loans Quote - 2 Important Tips to Help Get You a Great Low Rate Home Loan!
Getting good, low rate home loans isn't nearly as difficult as it might sound. Did you realize that all the mortgage quotes that you receive online include unavoidable markup designed to make an additional profit for the individual arranging the so-called low rate home loans? This additional markup is pocketed by the company that is arranging your home loan and is why so many of your neighbors are getting too much credit while you're paying too little... This is especially true if they're using a company that is also the originator of the loan that they are offering you.
It's true that homeowners who go through a mortgage broker can sometimes benefit from the lower interest rates offered through that broker. That's because they can benefit from the same markup that their broker offers. And if you do your homework and understand what you're buying when buying a home with adjustable rate mortgages (ARM), then you may well be better off going through a mortgage broker than through a low rate home loans company. Here's why...
You see, when you go through mortgage brokers you are dealing with someone who is working for their own interests. Your financial future is of no concern to them. What's more important to them is the sale of your mortgage. In this respect, comparing fixed rate home loans quotes with low rate home loans quotes via a mortgage broker puts you in the unfortunate position of being in debt with the lender you trust the most - the one that has arranged everything with you from start to finish.
Why should you be concerned with any arrangement with your lender that involves you being in debt with the one you trust the most? Simple... Money. A mortgage broker receives money when you buy your home. It's that simple. When you compare fixed rate home loans quotes with low rate home loans quotes via a mortgage broker you are comparing something that doesn't really exist - you, the buyer, are being asked to pay a premium for an existing service (paying money) when a completely different service (lowering your monthly payment amount for a fixed period of time) would work best for your financial situation.
When you use a mortgage broker you are being charged for a service that doesn't exist. Your broker isn't making money from those high fees and points you have to pay on your adjustable rate mortgage. When you use a mortgage broker you are being charged for a service that only exists with the high fees and points that you agree to pay. Isn't that a better deal?
Another reason why comparing fixed rate home loans quotes with low rate home loans quotes via a mortgage broker is a better option is because of hidden markup. Many brokers are required by law to disclose any and all fees associated with a mortgage, but very few brokers are actually required by law to reveal any and all hidden markup in the interest rates they charge their clients. A lot of this hidden markup comes in the form of "junk fees". Junk fees are the fees that are added to your loan without you knowing it. Junk fees can include; title and settlement fees, points, closing costs, appraisal and survey fees, and attorney fees.
As you can see, a lot of what you may think is "free" can cost you money. If you were to do your research yourself, you would discover that many of these hidden fees are very high and can amount to as much as half or more of the total mortgage rate you're receiving. How is that for "pre-approved"? Even though you may be getting pre-approved for a low rate home loans quote, that quote isn't as if you were truly approved for that rate, and you may have already found out that there was a significant increase in mortgage costs.
For this reason, many people are choosing to use a mortgage broker as opposed to applying directly with each low rate home loans lender they come across. A mortgage broker has a great many advantages, one of which is that they are able to find you the best deal out there. Another great advantage is that they are not required to disclose any of their markup in the low rate home loans quote they give you, thus ensuring that you don't know you are being overcharged. Also, many mortgage brokers have connections to many different lenders and are able to get you the best deal from each one. You are essentially getting a loan through a middleman, which has significantly less markup than purchasing directly from the car lender or directly from the company whose loan you are financing.