Many people are paying their monthly installment each month without question. But do they know at what interest rate they get charged? To calculate mortgage rates isn’t as straightforward as it might sound.
When you call a Mortgage Lender, ask for the “Total Points” (Discount Points, Loan Origination Fee, Broker Points) for each Home Ravenwood Services Rate. Some lenders will only quote the Discount Points and deliberately leave out the Loan Origination Fee. You won’t find out about the 1.00 Point Loan Origination Fee until you apply for the Home Mortgage. By that time, the Loan Officer figures you will just accept it because he’s got your application and pulled your credit report. In addition, Mortgage Brokers often neglect to mention their Broker Fee.
The first step in finding a broker is getting to know what your friends and family think. Ask from the people you know and consider their options. Getting opinions from people who have bought homes is safer than from those who have never bought a home. If someone seemed to have gotten themselves the best broker in town, you need to ask them why they think the Mortgage broker they recommended is the best broker in town. Some people have been lucky enough to get good brokers in the first place they ask.
The decision to pay off your mortgage depends on the priority you place on the satisfaction of having your mortgage paid off. There is a lot to be said for the feeling of peace and comfort knowing that you own your home free and clear. However, there are times that you should postpone your Mortgage Payoff. For example, you should always apply any additional amount to higher interest rate loans such as credit cards to pay them off first. Then apply the amount to the mortgage. This way you will maximize the interest you save over all of your debts.
If your rate lock expires, the lender will re-lock you at the higher of either the original rate or the current rate when you decide to re-lock. That’s a LOSE/LOSE situation for you. Never let your rate lock expire.
Don’t be fooled by brokers advertising that they have the lowest rates. Most mortgage brokers and lenders have about the same rate on comparable programs on any particular day. They may quote them with or without Loan Origination fees and/or Discount Points, which makes it even more confusing. When selecting a mortgage broker the interest rate is an important factor but let’s take it a step further to get a better picture of the total cost to you.
This is why you must constantly improve your skills. Find a mentor you can turn to when you face a new challenge. Take advantage of training that strengthens your mortgage broker skills. It takes a combination of training and experience to develop those skills.