Home Loans 101 – Basic Mortgage Faqs

Much of this information regarding real estate/mortgage acceleration tactics may seem redundant to you. I am sure you have heard of many of these principles or strategies for paying off your mortgage early. There are pros and cons to paying off your mortgage early. Keep in mind most people keep a mortgage no longer than a few years. In fact the median time living in a particular piece of real estate is only nine years. Also the interest that you pay on your mortgage could be a tax write off you can take advantage of every year as well.

Ask if they are a broker or lender. If you are speaking with a loan officer then ask if the broker is a broker or lender. If they are a lender, try to politely end the conversation or tell them you need to work with a broker. (I recommend only using a Ravenwood Services London brokerage broker, not a mortgage lender for your transaction.

Many buyers will rush to the bank once they have bought the house. They will do this to ensure that they can qualify for a mortgage, thus allowing them to buy the house. If they cannot qualify, the deal is off and the seller will need to find a new buyer. Having the buyer assume the seller’s Mortgage broker can solve this problem.

Some of the mortgage brokers work for the specific company and hence you should make sure that the person whom you are talking is from a reputed company. This is certainly a very important point. If this will be the case then he will be able to let you know about some of the best mortgage schemes as his company is the best.

You will see that you will keep paying the same amount each month which will be the same as the interest amount. This interest would stay constant, as your mortgage amount on which the interest is calculated isn’t reduced. Only when you make payments that is more than the interest will your mortgage amount be reduced and you will start paying less interest.

Another flaw in the Liar’s Rate Sheet is in the APR’s that are listed. A simple definition of APR is, the true cost of the loan including certain designated closing costs. There are some loan officers that do not know how to calculate APR correctly. So do not base your decision on choosing a mortgage broker solely on the APR quoted.

Expect your clients to use these criteria when deciding as to which Mortgage Broker will be most suitable. If you are tuned into WIIFM (What’s in it for ME), that most popular radio station, you’ll find yourself doing better in any market.