| |
| |
|
Mortgage & Refinancing Information |
|
|
|
How Not To Be Ripped Off By Mortgage Brokers
One of the things that bothers me about the mortgage industry is the number of unscrupulous brokers that operate in this market. Talk about giving the industry a bad name! I worked for a mortgage lender until quite recently and I used to be shocked at the fees that brokers charged their clients. I mean lets put this whole "mortgage arranging" thing into perspective. Assume I am meeting a client today. The guy walks into my office and sits down and has a chat with me about getting a mortgage. It appears that he is not a "clean" client as he is suffering from a few credit problems. Well, I stroke my chin and let out a couple of sighs but wait, I CAN HELP HIM. I tell the client that it is going to be difficult but I think I can help him. There may be a few "fees" but hey, at least he is going to get a mortgage and that is all he cares about isn't it? So, he needs to borrow £150k. Because of ALL the work I am going to have do I am going to charge him a competitive fee of 3% of the loan amount. That's right, £4,500!. But, he does have credit problems and he is going to get a mortgage and that is all he cares about right? Oh, and the £4,500 doesn't have to be paid upfront because all we will do is add it onto the loan amount. So that's ok ,right? NO,NO,NO. Ok I am talking about a hypothetical situation but this is one that is repeated everyday throughout the UK. In my opinion it is nothing more than robbery and shows scant regard for the clients wellbeing. How can anyone justify charging that to a client that will already have to pay a higher interest rate than a clean client would. So, to recap, the £150k loan now becomes £154,500 and that is before you even get to the solicitor and arrangement fees, let alone the Mortgage Indemnity Premium (MIG. So, the rule of thumb here is a simple one. Ask your broker to justify their fees and if you find anyone charging a fee of more than 1%, walk away. Quickly. Mark Anthony Harrison has worked in the Financial Services sector for over 16 years, many of them spent working for a mortgage lender and more recently with his own mortgage and finance brokerage. Visit him at http://www.capitalmortgagesolutions.co.uk
MORE RESOURCES:
Mortgage-Refinance - Google News |
|
|
|
RELATED ARTICLES
What is a Fixed Rate Mortgage? As the term implies, with a fixed rate mortgage the mortgage rate is fixed for a set period of time, so no matter what movements occur in the lender's standard variable mortgage rate, the borrower's arrangement is fixed and, therefore, so are the monthly fixed rate mortgage payments.A fixed rate mortgage would suit someone who likes to know where they stand. Council Right To Buy Mortgage - Transform Your Accommodation Into Home Homeowner - does this term catch your attention every time you hear it? It is a powerful term. It is hard being a tenant for long. PayDay Loan Online - Quick Cash Advance Loans Online Are Very Convenient Getting a quick cash loan, cash advance or payday loan has never been easier than it is today, thanks to the internet. Today you can apply and be approved for a payday loan or cash advance fast, in the comfort of your own home. Home Loan Lenders - Finding the Best Home Mortgage Lender The process of obtaining a mortgage or home loan can be very stressful and quite time consuming. Finding the best lender for your situation requires research and comparisons between lenders and loan packages. Tips for Getting Home Loans from the Right Lenders Getting home loans is possibly the biggest step in an adult's life. It's up there with having kids, landing that big job, starting your own business. Mortgage Loans Explained In Plain English With the many different kinds of mortgage loans out there, choosing the right one for your needs can be a difficult task. The following points will help you understand the pros and cons of the different types of mortgage loans available to you. Refinancing After Bankruptcy Refinancing after a bankruptcy can seem like an especially difficult challenge, but it doesn't have to be. Six months after your bankruptcy has been finalized, you can find lenders willing to refinance your mortgage. Bad Credit History? How Financing and Buying a Home Can Help You Improve Your Financial Situation Financing and buying a home can help improve your financial situations, especially if you have a bad credit history. Adding a mortgage payment to your monthly expenses seems like a mistake if you are having financial difficulties, but in the long run a mortgage can save you money on your living expenses. Home Equity Line of Credit - Great Idea for Rainy Day Emergencies Most Americans tend to live on a paycheck-to-paycheck basis, and the typical household has nearly $10,000 in credit card debt. Adding to that is the fact that Americans are saving money at the lowest rate in history. Using a Calculator to Assess Your Loan Buying a house is a very important step in your life. Every family dreams of having their own home and whether you are looking into your first, or are moving or upgrading your home, you know your mortgage is important. Tips On New York Mortgage Refinance Loan Many homeowners want to know if it worth taking a New York mortgage refinance. How do you know if New York mortgage refinancing makes sense in your case? Read on to understand when you should refinance and how to go about doing it. Thought You Can Go All Alone In Mortgages! Mortgage Advice Beneficial In All Important Decisions Mortgages are easy as long as you understand them well. But how many borrowers can be confident of their knowledge of mortgages. Mortgage Reduction Solutions USA ECONOMIC CONDITIONSToday's sluggish economy has left millions of people struggling to financially make ends meet. Lou Dobb's coined phrase "Assault on the Middle Class" continues. A Guide to Getting a Bad Credit Remortgage There are several reasons why you might be in the market for a bad credit remortgage. You might be wanting to try to lock in a lower interest rate, or perhaps you simply need to use the bad credit remortgage as a way to consolidate some of your debts. Online Mortgage in UK - Introducing the Best Mortgage Plan Across UK Add the term 'online' and it will open for you an exhaustive assortment of opportunities. Add online to mortgage and it will have the same effect. Non-conforming Home Loans vs Conforming Loans The simple definition of a "non-conforming home loan" is: You have a job and can make the payments. Your credit is used only to determine your interest rate and the loan amount to value of the home ratio. Bad Credit Home Financing - Buy a House Even With Poor Credit Sub prime lenders come in two groups: reasonable and unreasonable. Reasonable sub prime lenders offer mortgage financing to high risk borrowers with slightly increased rates and fees. Find the Best Mortgage Company If you do not wish to commit to living in one place for at least a few years, then owning a house is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner. Top 5 Methods to Manage Your Home Equity As your home appreciates in value, you gain equity. You can look at this equity, as a portion of the value of your home, which becomes an asset that is not burdened by debt. Low Home Mortgage Interest Rate - Finding the Best Mortgage Rate Interest rates are at an all time low, making now the perfect time to purchase a new home or refinance your existing mortgage. The interest rate you receive will depend largely on your credit rating, monthly debt, and your income.
|
| home | site map |
| © 2006 |
