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The 13 Secrets Lenders don’t Want You to Know
The 13 Secrets Lenders don’t Want You to Know
“The 13 Secrets Mortgage Companies Don’t Want You to Know” by Andy Jacob
- Plus a Special Bonus!
- 4 Secrets of getting the Best House for Your Money. - Plus, an Additional Special Bonus
- The Mortgage Game’s 4 big rip-offs!
A $49.95 value, compliments of MyLoanPage.com
Secret #1
The biggest secret Lenders, or more specifically, mortgage companies don’t want you to know is that mortgage rates and fees are typically different with every lender. In other words, when it comes to mortgages, the rate and fees you pay can be different from one lender to the next, and all mortgage rates are somewhat negotiable. A mortgage – whether it’s a home purchase, a refinancing, or a home equity loan – is a product, just like a car or a boat, so the price and terms are typically negotiable.
The Secret most mortgage companies don’t want you to know is that they typically get paid a bigger commission the higher rate and fee they get you to pay. And the rates and fees at the same company can be different, depending on the level of sales sophistication of the loan officer on the phone. It is not atypical to speak to 2 different loan officers at the same company within minutes of each other, and each of them give you a different mortgage quote. It’s crazy, but true. So, you’ll want to compare all the costs involved in obtaining a mortgage. Shopping, comparing, and negotiating can save you thousands of dollars. And not only shop from company to company, but shop with a company with two different Loan officers. Save money on your mortgage by receiving a free, no obligation mortgage analysis from www.BlueFinancial.net.
Secret #2
Home loans are available from several types of lenders thrifts institutions, commercial banks, mortgage companies, and credit unions. Different lenders may quote you different prices, so you should contact several lenders to make sure you’re getting the best price. You can also get a home loan through a mortgage broker. Brokers arrange transactions rather than lending money directly; in other words, they find a lender for you. A broker’s access to several lenders can mean a wider selection of loan products and terms from which you can choose. Brokers will generally contact several lenders regarding your inquiry, but they are not obligated to find the best deal for you unless they have contracted with you to act as your agent. Consequently, you should consider contacting more than one broker, just as you should with banks or thrift institutions. Save money on your mortgage by receiving a free, no obligation mortgage analysis from www.BlueFinancial.net.
Whether you are dealing with a lender or a broker may not always be clear. Some financial institutions operate as both lenders and brokers. And most brokers’ advertisements do not use the word “broker.” Therefore, be sure to ask whether a broker is involved. The Secret most mortgage companies don’t want you to know is that brokers are usually paid a fee for their services that may be separate from and in addition to the lender’s origination or other fees. A broker’s compensation may be in the form of “points” paid at closing or as an add-on to your interest rate both. You should ask each broker you work with how he or she will be compensated so that you can compare the different fees. Be prepared to negotiate with the brokers as well as the lenders. Save money on your mortgage by receiving a free, no obligation mortgage analysis from www.BlueFinancial.net
Secret #3
It is important to ask different lenders the same questions about the same loan amount so you can compare their rates and fees effectively. The following information is important to get from each lender and broker:
Rates
- Ask each lender and broker for a list of its current mortgage interest rates and whether the rates being quoted are the lowest for that day or week.
- Ask whether the rate is fixed or adjustable, and keep in mind that when interest rates for adjustable-rate loans go up, generally so does the monthly payment.
- If the rate quoted is for an adjustable-rate loan, ask how your rate and loan payment will vary, including whether your loan payment will be reduced when rates go down. And ask about the index and margin the adjustable rate mortgage is tied to.
- Ask about the loan’s annual percentage rate. The APR takes into account not only the interest rate but also points, broker fees, and certain other credit charges that you may be required to pay, expressed as a yearly rate. But do not rely 100% on the APR given. Many brokers incorrectly calculate the APR, so it really is not the ultimate comparison tool the government wants it to be.
Points
Points are fees paid to the lender or broker for the loan and are often linked to the interest rate; usually the more points you pay, the lower the rate.
- Check your local newspaper for information about rates and points currently being offered.
- Ask for points to be quoted to you as a dollar amount – rather than just as the number of points – so that you will actually know how much you will have to pay.
Fees
A home loan often involves many fees. Every lender should be able to give you an estimate of its fees. The Secret most mortgage companies don’t want you to know is that many of these fees are negotiable. Some fees are paid when you apply for a loan (such as application and appraisal fees), and others are paid at closing. In some cases, you can borrow the money needed to pay these fees, but doing so will increase your loan amount and total costs. “No cost” loans are sometimes available, but they usually involve higher rates. This may, or may not be, a good or bad thing depending on your circumstance. Save money on your mortgage by receiving a free, no obligation mortgage analysis from www.BlueFinancial.net
- Ask what each fee includes. Several items may be lumped into one fee.
- Ask for an explanation of any fee you do not understand. Some common fees associated with a home loan closing are listed on the Mortgage Shopping Worksheet in this document.
Secret # 4
Some lenders require 20 percent of the home’s purchase price as a down payment. However, The Secret most mortgage companies don’t want you to know is that many lenders now offer loans that require less than 20 percent down – sometimes as little as 0 to 5 percent! Ask you broker if this type of program is offered. Private Mortgage Insurance usually requires the homebuyer to purchase Private Mortgage Insurance (PMI) to protect the lender in case the homebuyer fails to pay. When government-assisted programs such as FHA (Federal Housing Administration), VA (Veterans Administration), or Rural Development Services are available, the down payment requirements may be substantially smaller. Save money on your mortgage by receiving a free, no obligation mortgage analysis from www.BlueFinancial.net
- Ask about the lender’s requirements for a down payment, including what you need to do to verify that funds for your down payment are available.
- Ask your lender about special programs it may offer.
If PMI is required for your loan,
- Ask what the total cost of the insurance will be.
- Ask how much your monthly payment will be when including the PMI premium.
- Ask how long you will be required to carry PMI
“The 13 Secrets Mortgage Companies Don’t Want You to Know” by Andy Jacob
- Plus a Special Bonus!
- 4 Secrets of getting the Best House for Your Money. - Plus, an Additional Special Bonus
- The Mortgage Game’s 4 big rip-offs!
A $49.95 value, compliments of MyLoanPage.com
