I have a question for any home owners who might read this. When you first went about securing a mortgage for your home how did you do it? Did you go through your bank and speak with the mortgage specialist on hand at the bank branch or did you use Mortgage Brokers? I’m trying to decide which way works better for the home owner.
When Chris and I bought our home we first started out talking with our banks but we didn’t really like the offers that they were giving to us. You see they can only offer whatever mortgage types that the bank they work for handles. We switched to a mortgage broker who’d been recommended to us by our real estate agent, who did not receive any payment from us for his services, and he was able to look through all of the offers with all the banks that have mortgage packages and he found us what I still believe to be the very best mortgage at that time.
Interest rates were really low 5 years ago, and the bank was offering us a mortgage at 5.1% I believe. When we went through our broker we got a mortgage with 0% interest for the first 6 months and then after that we only paid 1% interest for the longest time until the mortgage rates began climbing again. As of right now our mortgage rate is only 4.5% and that’s still a much better deal that what most people are offered.
So my vote is for talking with a mortgage broker when getting a new mortgage for your home. What do you think? What have your experiences been like compared to my own?
Mortgage Brokers come in a mixed bag, so you have to be careful who you choose. Some are more honest than others. I think if you can pick one that is up front with their fees, then thats a good start.
If you get the right one they can be great as they know the industry and can sniff out the best deal. Get the wrong one and they will just line their pocket.
I have generally gone direct for my loans, but then I had the time to shop around and was fairly clued up on the industry.
Also keep an eye on your mortgage once you have it. If it is sold on or moved around through lenders make sure you audit it. Even mortgages that stay with the one lender can have errors in their interest calculations that can cost you thousands. If you are thinking of re-financing then also check your statements.
You can try to put together a spreadsheet to track your mortgage, or just download one of the better mortgage software packages out there (eg try http://www.homemoneymanager.com or just search for “Mortgage Audit Software”)
Good luck!