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When you buy a new house, consider getting a mortgage for the home. Here, your new home is taken as collateral. Mortgages involve a mortgage creditor, a mortgager and a mortgage broker. The mortgage creditor is the entity that loans money for the mortgage. In addition to banks and financial institutions, there are many other lenders. Mortgager is you, who is usually borrowing the loan. The use of the services of a mortgage broker is elective. Here are a few reasons why you should hire him.

Makes You Understand the Various Options

A mortgage broker for housing makes you understand about so many options you have to obtain a mortgage. There are lots of mortgage products to adapt to various income and credit situations. A broker makes you aware of them. He can also help you develop a plan that guarantees a better deal if you apply for a mortgage. Even if you can’t get a better offer now, this plan will help you get one in the future.

Offers You Advice

There is a limited amount of mortgage products when it comes to a type of mortgage creditor. A mortgage broker knows all the products that each of these creditors can deal. Therefore, when you take his assistance, you will recognize where to get better deals. Understand all types of mortgage variation options with a mortgage broker.

Gets You the Best Offer for Your Credit Situation

When it comes to mortgages in a bank, you must be your own negotiator. However, he helps you negotiate with the lender about the loan in an effective manner. He is a professional in negotiations. He knows what the best offers are for your present credit rating. Whether you are a mortgage buyer for the first time and do not know the basic principles of the mortgage, it is advisable to hire a broker to help you. He ensures that you get the deal that is helpful to you.

Get the Lowest Interest Rates to Match Your Income

He works with a wide variety of clients, both borrowers, and lenders. He has knowledge about which lender can provide you the lowest income rates. If he realizes a deal like that, he connects it to you. You can get your help to get a mortgage loan with interest that matches your income situation. You can get the house of your dreams with a reasonable loan with a mortgage broker.

Helps You Pay Your Loan Quickly

He helps you reduce your debt. The broker conducts an investigation to help you cancel the mortgage loan sooner before your term expires. He checks your mortgage several times to see how best he can help you repayment and renewal of your mortgage.

Conclusion

A mortgage broker is focused on the customer. He helps make sure you do not get a mortgage loan that you can’t afford. He always looks at all the packages and provides you the right guidance. With a professional like him, you can make sure to stay away from mortgage scams. Learn more details at mortgagebroker247.com.au

You've heard this a few million times, "If it sounds too good to be true. it's usually is." In the past several years the Mortgage broker released "Magic Mortgages" with "1%" interest rates. These loans were designed for only about 7% of the population, however, some unscrupulous brokers decided to market this to the entire borrowing universe. For that elusive 7%, I can safely say that it's about that many people who truly understand how these loans actually work.

From my own perspective, some of them seem less honest than others, although I have trouble calling any of them particularly fair. The usual suspects you're likely to be familiar with include:

  • No application fee
  • Apply now! For a limited time our variable rate is a low x.xx%
  • Big savings on the Big 4 standard variable rate
  • No fees
  • Low comparison rate
  • Free holidays, plasma or other gimmicks

Let's just take a quick look at a couple of them in detail.

The Option Arm or "Pick-a-Pay" loan works similar to this:

Each month the customer can pick or choose from four different payment options. The first (and most dangerous) is the deferred interest or minimum payment option. This is essentially saying that you may pay only a portion of the interest and defer the remaining, with nothing going to principal. The problem with this loan is the mortgage brokers and customers who fool themselves into thinking this is the best practice. This loan is currently being offered on public access television in the form of poorly produced infomercials. Click here !

Another problem the consumer has is the way these loans are advertised in print, most times without a published APR (annual percentage rate). Not only is this misleading and deceptive practice, it's also against the compliance regulations of the Dept of Banking & Insurance.

The other three options include:

Interest Only, Full Principal & Interest and an accelerated payment designed to lower the term on your mortgage. Interest only, when used correctly can be a decent option for most borrowers. Typically the max period for interest only is 10 years and it is not recommended that you defer principal for that entire period. It is however acceptable to increase occasional cash flow by carefully choosing when not to pay principal.

The last two options:

Full Principal & Interest and accelerated payments is where the "magic" really dissolves. Full P&I payments are based on a fully indexed rate (currently averaging 8%) therefore a far cry from the 1% starting rate. That's right, I said starting rate. This loan will continue to increase in rate since the entire loan is an adjustable rate mortgage. The accelerated payment for most persons is not really an option since you are essentially doubling the Full P&I payment to pay off your loan in half the time.

These loans do, despite all I've pointed out have their rightful place in the lending world. Mortgage brokers Melbourne use these loan to secure second homes and Investment properties. When properly managed these loans can help maximise profits and counter lost rent revenues through vacancies. Even on an owner occupied property, these loans can be very effective, but the underlying theme here is caution.

To conclude:

To "operate" this loan read the entire instruction manual before starting. That way, you fully understand the benefits and any potential downside.

Mortgage brokers Melbourne goal is to help guide you towards the right financial decisions for your family. Get more information and visit this site : mortgagebroker247.com.au