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What You Need To Know About Mortgage Brokers

What You Need To Know About Mortgage Brokers

For those who are completely new to the mortgage field, this article covers the basics. A mortgage occurs when a property is charged by a creditor as debt security.  Mortgages are popular in the banking industry today and they influence interest rates because of their importance. Mortgages are paid off over a long period of time, in many cases over a thirty-year period. Despite the fact that they are paid over a long period, mortgage charges take up a significant part of the monthly salaries of most people.

What is a mortgage broker?

Having established the ideology of what a mortgage is about, it’s important to know what mortgage brokers are. A mortgage broker is an intermediary that negotiates mortgage loans for individuals, groups, and business organizations. A mortgage broker may either work on behalf of a bank or lending institution, or be independent. In many cases after mortgage brokers working on behalf of institutions have obtained vast experience in the field, they move on to become independent mortgage brokers, otherwise known as private mortgage brokers.

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How are mortgage brokers paid?

Although mortgage brokers can be paid in a variety of ways, in most cases they are paid by the lenders. Consequently, this implies that they offer services free of charge to their clients. While many brokers are paid by their lenders, other brokers charge clients a small fee for their services. It’s important to understand that private brokers can freely set their service prices and preferred mode of payment since they operate independently. When dealing with mortgage brokers, it is important to know if you’re dealing with a broker who works with an institution or with an independent broker. Before hiring the services of a mortgage broker, ask questions about fees and payment mode. This is especially important if you’re transacting with a private broker.

Like other businesses, there are some downsides to note when transacting with corporate mortgage brokers. The major downside is that they do not have access to funds being requested as fast as possible, especially in cases of emergencies. They have large numbers of clients to process funds on their behalf and may not be able to process loan requests within a short amount of time. Mortgage brokers working for financial institutions typically have less experience. Conversely, independent mortgage brokers have acquired vast experience and can process loan requests much more speedily. This experience helps them bypass undue hierarchies, prepare paper work, and present loan requests to the right bank official directly and get prompt response after the loan request.

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What advantages do independent mortgage brokers have over corporate mortgage brokers?

Independent mortgage brokers have a very unique edge that makes them very proficient in service delivery. One advantage of using independent brokers is the array of information and deals to which they have access. Because they transact with multiple lenders, they are well connected and have in-depth knowledge about the ins and outs of brokerage service. It is safe to say that the independent broker is connected to a large number of lenders; some are connected to over twenty lenders. This variance gives you alternatives and the ability to make choices that suit your best interests.

This makes the services of an independent service unique and worth potentially several thousand dollars depending on the property value for which a mortgage is being sought. For example, a mortgage of $100,000 at about 1% lower interest rate over a thirty year period saves $30,000 depending on when interest on the principle amount is recalculated.

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In the mortgage industry, mortgage fraud is a cause for concern and there’s need to determine credibility before transacting with a mortgage broker. In the United States for example, the credibility of a mortgage broker can be easily ascertained by checking with the Better Business Bureau (BBB). The BBB provides business ratings so you can get detailed information about the proficiency, history, and other important business accreditations of a mortgage broker. In other countries similar organizations provide similar services and you can look up information on any mortgage broker of your choice and even read reviews about them if they have functioning websites.

Things a Mortgage Broker Does for You that a corporate broker cannot:

  1. Wide scope of honest advice

Trained corporate brokers are limited compared with independent brokers, and corporate brokers only have knowledge about the institution they represent. An independent broker has vast experience and offers varieties of options that best meet your interests.

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  1. In-depth education

Your mortgage broker’s job is to help you understand the different mortgage products that are available for your credit and income level. Your broker can help you develop an action plan so that even if you don’t qualify for a better mortgage now, you’ll be able to get a better rate after implementing the plan.

  1. Help negotiate preferential transactions

Corporate brokers are not hinged on fixed rates; they can help you look into your financial records and help determine the right lender and rates to apply for. A corporate broker may help you in securing lower rates, but you don’t have valid guarantees that these reductions won’t be cancelled out by hidden fees. Independent brokers know the loop holes, can identify pitfalls and hidden clauses in paper work, and help you save lots of money in the long run.

Featured photo credit: Sherissehume via sherissehume.com

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Last Updated on August 15, 2018

30 Fun Things You Can Do This Summer Without Spending Much

30 Fun Things You Can Do This Summer Without Spending Much

Summertime can be a real strain on your wallet. The sun is out, there are people to see, places to be; it’s no wonder you might be short of funds during these sunny months. Not everything has to cost you an arm and a leg.

Take some time to go through this list of 20 cheap summer activities and make some realistic goals to complete as many as you can.

Video Summary

1. Visit a strawberry festival

Summer is prime time for tasting strawberries. More often than not, an area that grows strawberries will have a strawberry festival. Indulge yourself in strawberry pies, jams, cakes and more!

2. Have a picnic

Take your partner or your family to the local park and enjoy a relaxing picnic. Designate each person to bring one food item of their choice to add to the fun.

3. Camp in your back yard

    The summer heat can sometimes make it hard to sleep. Why not enjoy the heat outside in the yard? Pitch a tent or gaze into the night sky.

    4. Take long walks

    Discover something new where you live. Take the afternoon off from your chores and go for a long walk. You may be surprised by what you discover.

    5. Break a world record

    Breaking a world record doesn’t have to be time-consuming. You could even break one on your lunch hour. Give it a go!

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    6. Go on a bike ride

    The number of bike paths on roads in big cities has increased dramatically over the years. Take advantage, and enjoy the summer breeze.

    7. Join a gym class

      The gym is not everyone’s idea of a good time, but why not go with a friend a join a class? Spinning, yoga and step classes are always more fun with friends, and a lot of gyms allow you to pay-as-you-go.

      8. Find a new hobby

      The summer is the perfect time to find a new hobby. Serotonin (our body’s natural “happy” hormone) is produced by the sunshine and will be at a yearly high, which is great for when we want to tackle something new.

      9. Join a sports team

      Not all sports teams are competitive and require huge amounts of your time. Join in the fun with like-minded people, get fit, stay healthy and make some friends along the way.

      10. Make a slip ‘n slide

        Gather your friends, some plastic sheeting, a hose, washing up liquid if desired, and make a huge slip ‘n slide just like these guys. Granted, yours won’t be as big, but you get the idea… it’s fun!

        11. Make a treasure hunt for your kids

        Today’s digital world sees our children more often than not playing inside than outside. Why not create a sense of adventure by making a treasure hunt? Only rule? It has to be outside.

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        12. Visit a free festival

        Towns and cities are awash with free festivals, with themes from film to science. Scout your local area and discover something new.

        13. Visit the zoo

          Let’s face it: we love animals. While browsing news websites and social media networks you’re bound to come across a few pictures of cats. Take a trip to your local zoo for a better experience.

          14. Take a road trip

          Enjoy the open road with a few friends and take a road trip somewhere–anywhere. Just go out and enjoy the sunshine!

          15. Play ultimate frisbee in the park

            Frisbee is always great fun down the park, but why not turn it into more of a competitive sport by playing ultimate frisbee?

            16. Make your own ice cream

            Ice cream is a very versatile dessert. Make a sandwich, enjoy a cone, or simply just enjoy a bowl full. Better yet, making your own ice cream allows you to create any flavor you want.

            17. Invite your neighbors over for a BBQ

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              When was the last time you invited your neighbors over? Do you even know them? Now’s your chance. Just ask each person to bring a food item so costs don’t mount up for you.

              18. Get a summer job

              For many students, summer is the time for relaxation and fun. But who said earning money and being productive isn’t fun? You only get out what you put into a situation.

              19. Attend a charity event

              Attending a charity event is a great way to raise funds and awareness for a cause, meet new people, and generally have a good time. Search for your local charity event today.

              20. Visit a national park

              National parks are a great way to explore nature and learn something new. You could even volunteer and make a difference in helping restore natural habitats.

              21. Visit your local comedy club

                Local comedy clubs are extremely underrated. They are cheap to attend and no doubt you’ll have a barrel of laughs.

                22. Make your own hammock

                  Hammocks are very relaxing, are perfect for summer afternoons and are surprisingly easy to make.

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                  23. Read in your new hammock

                  Now you have your very own hammock, the only thing left to do is enjoy it. Grab your favorite book and read to your heart’s content.

                  24. Watch a movie outside

                  Movies are great. Relaxing outside in the evening is great. Put them together and you’ve got a perfect combination. In D.C, Maryland and Virginia this summer, for example, you can enjoy a huge number of movies outside.

                  25. Take a hike

                    Hikes are a great way to keep fit and see more of Mother Nature. There are countless trails available for you to explore. Why not try some this summer?

                    26. Learn how to fly a kite

                    As a child, you probably had a kite and haven’t touched it since. Why not dust it off and attempt to fly it? It’s tricky, but well worth the challenge.

                    27. Work out at the park

                    American cities are full of parks with ample space for a work out session. No doubt you’ll be happier to work out in the sun rather than a crowded gym.

                    28. Take your dog to the beach

                      One of the many joys of owning a dog is taking him or her for long walks during the summertime. This joy is enhanced when visiting the beach, for both you and your dog.

                      29. Make a summer smoothie

                      Healthy, delicious and perfect for the summer. Not only that, there are countless recipes ready for you to try.

                      30. Attend a free yoga session at the beach

                      No experience needed and all skill levels are welcome. Take yourself and a buddy down to the beach and try some yoga. You’ve got nothing to lose!

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