I have a friend who is buying a house. He is trying to get the best rate. There are mortgage brokers that are offering a rate that is 0.125% better than the banks. Right now, that is around 6.25% for a 30 year loan at 80% financing. Are mortgage brokers the best deal? Thanks.
5 Comment(s)
I like that your asking about a good mortgage… not the BEST. There is no BEST out there. If your friend likes the rate (more importantly the payment) then he should be ok.
Find a loan officer you like and can trust. When you get the good faith estimate keep in mind that the items from the loan officer are going to be:
Origination, Mortgage Broker Fee, Processing, Credit Report and if they are sneaky an application fee.
Most of the items the loan officer discloses to you are in fact 3rd party fee’s and in reality we have little control of this… Especially with a purchase since many of the service providers are picked by the agents.
Appraisal, tax service, underwriting, title/escrow, notary, doc prep etc… Also taxes and insurance.
Expect title and escrow to cost a pretty penny. Keep in mind that the companies that are used are typically picked by the agents but it is a negotiable item in the contract. If you shop around you maybe able to find better pricing. Make sure it is better for both you and the seller or the seller most likely will not be willing to change companies.
Regarding the rates… depending on the loan amount, credit, documentation etc… they may be great or they maybe on the high side. Without knowing the scenario it is hard to tell if the pricing is right in line; however 6.25% is not a bad rate.
This site may help you to compare many mortgage companies at once fill the form and you can get a free quote from top banks, brokers and mortgage lenders
Please read the strings attached with the offer. Please ask mortgage broker for full details of terms of loan which either you will sign or which you will receive after signing the agreement. If you default, then any broker would reserve right to increase their interest rates. So, please be aware. You will be signing an agreement for 30 years. It is good that you have attempted to collect more information through this Q & A session. Please ask your colleagues or friends who had taken similar loans and please ask for their experience with their broker or banker.
Unless you have a fixed-rate mortgage, the current mortgage interest rates are very important to deciding how much you should pay every month therefore it is always a good idea to keep an eye on what the rates are doing. If interest rates should rise, so will your monthly payments and again, if interest rates were to fall, so would the amount you would have to pay.
I`M SUSAN RICHARD, LOAN SERVICE we give out loan to Business Men and women who are into Business and need money to expand their business or in starting a new business, we give out long term loan for to five years 10 years maximum if you are interested in this you can as well tell us the amount you need so that I send to you the terms and condition that is if you are realign interested in getting a loan from me and our interest on loan is the cheapest in the world, Loan is given out in GBP Pounds and $US dollars the maximum I give is $25,000 both in pounds and $US and the minimum 5,000 pound sand US$ so if really you are interested email me for more info on how the loan can be transfered to you. There is one Question i have to ask ,are you as serious individual that when you get this loan will you be able to pay back after duration with the interest, if you are honest I will trust.
You because I like to do business with Honest people if you are interested you will get the loan with out problem and for your information if you like to take a loan above $50,000,I can give only if you are in one of these categorizes A Manager of a company A private Hold broker in bank director in any office or company A high investor of and company If you are one of the following you can get $50,000, as loan or if personal loan you can request for 5,000-10,000, as loan. Send these info it is important in processing your loan immediately.
NOTE: that only a honest and a serious client should apply because we only attend to
only a serious client and honest client only.
Sometimes using a broker can help because if your credit is questionable they can broker out thatloan to a number of different banks that can possibly accept it. If you are using a BANK bank (like meridias capital, etc.)they ARE the bank and keep the loan in house and a guideline is a guideline, and if you don’t meet that guideline things can get stressful and messy! Shop around, you can run your credit many times for the same reason (lenders looking at it) for up to 15 days and it wont affectyour score. See who can give you the best breakdown/deal/program. It’s called a good faith estimate (obviously you have the property in mind, right?)
ARM’s are good and bad. They are good if you know you are not going to be in thehouse for more than 5 years, bad if you are going to be there longer because in 5 years they will adjust. You will only be locked into that rate you close escrow at for 5 years. Either way, lately, you have to have a credit score of 680 or higher to even be considered for a home loan of any kind.
I like that your asking about a good mortgage… not the BEST. There is no BEST out there. If your friend likes the rate (more importantly the payment) then he should be ok.
Find a loan officer you like and can trust. When you get the good faith estimate keep in mind that the items from the loan officer are going to be:
Origination, Mortgage Broker Fee, Processing, Credit Report and if they are sneaky an application fee.
Most of the items the loan officer discloses to you are in fact 3rd party fee’s and in reality we have little control of this… Especially with a purchase since many of the service providers are picked by the agents.
Appraisal, tax service, underwriting, title/escrow, notary, doc prep etc… Also taxes and insurance.
Expect title and escrow to cost a pretty penny. Keep in mind that the companies that are used are typically picked by the agents but it is a negotiable item in the contract. If you shop around you maybe able to find better pricing. Make sure it is better for both you and the seller or the seller most likely will not be willing to change companies.
Regarding the rates… depending on the loan amount, credit, documentation etc… they may be great or they maybe on the high side. Without knowing the scenario it is hard to tell if the pricing is right in line; however 6.25% is not a bad rate.
This site may help you to compare many mortgage companies at once fill the form and you can get a free quote from top banks, brokers and mortgage lenders
Hope this help,
teodora | Jun 14, 2009 | Reply
Please read the strings attached with the offer. Please ask mortgage broker for full details of terms of loan which either you will sign or which you will receive after signing the agreement. If you default, then any broker would reserve right to increase their interest rates. So, please be aware. You will be signing an agreement for 30 years. It is good that you have attempted to collect more information through this Q & A session. Please ask your colleagues or friends who had taken similar loans and please ask for their experience with their broker or banker.
Sukumar S | Jun 14, 2009 | Reply
Unless you have a fixed-rate mortgage, the current mortgage interest rates are very important to deciding how much you should pay every month therefore it is always a good idea to keep an eye on what the rates are doing. If interest rates should rise, so will your monthly payments and again, if interest rates were to fall, so would the amount you would have to pay.
Important | Jun 17, 2009 | Reply
I`M SUSAN RICHARD, LOAN SERVICE we give out loan to Business Men and women who are into Business and need money to expand their business or in starting a new business, we give out long term loan for to five years 10 years maximum if you are interested in this you can as well tell us the amount you need so that I send to you the terms and condition that is if you are realign interested in getting a loan from me and our interest on loan is the cheapest in the world, Loan is given out in GBP Pounds and $US dollars the maximum I give is $25,000 both in pounds and $US and the minimum 5,000 pound sand US$ so if really you are interested email me for more info on how the loan can be transfered to you. There is one Question i have to ask ,are you as serious individual that when you get this loan will you be able to pay back after duration with the interest, if you are honest I will trust.
You because I like to do business with Honest people if you are interested you will get the loan with out problem and for your information if you like to take a loan above $50,000,I can give only if you are in one of these categorizes A Manager of a company A private Hold broker in bank director in any office or company A high investor of and company If you are one of the following you can get $50,000, as loan or if personal loan you can request for 5,000-10,000, as loan. Send these info it is important in processing your loan immediately.
NOTE: that only a honest and a serious client should apply because we only attend to
only a serious client and honest client only.
Contact.via e-mail:susfasaloanfirm@live.co.uk Or
Best regards,
Mrs Susan Richard.
Susan | Jun 20, 2009 | Reply
Sometimes using a broker can help because if your credit is questionable they can broker out thatloan to a number of different banks that can possibly accept it. If you are using a BANK bank (like meridias capital, etc.)they ARE the bank and keep the loan in house and a guideline is a guideline, and if you don’t meet that guideline things can get stressful and messy! Shop around, you can run your credit many times for the same reason (lenders looking at it) for up to 15 days and it wont affectyour score. See who can give you the best breakdown/deal/program. It’s called a good faith estimate (obviously you have the property in mind, right?)
ARM’s are good and bad. They are good if you know you are not going to be in thehouse for more than 5 years, bad if you are going to be there longer because in 5 years they will adjust. You will only be locked into that rate you close escrow at for 5 years. Either way, lately, you have to have a credit score of 680 or higher to even be considered for a home loan of any kind.
Simbhu T | Jun 23, 2009 | Reply