|
|
|
|
|
|
|
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
Washington Times
IndiaPost.com, CA - 1 hour ago
For mortgage refinancing, that means knowing the terms of your existing mortgage and the latest mortgage rates, as well as reviewing your credit report and ...
Lenders Backlogged By Refinancing Rush Washington Post
The Truth About Mortgage Refinancing Revealed By Connecticut ... SBWire (press release)
Refinancing suddenly booms Honolulu Advertiser
MSNBC - Forbesall 26 news articles
Money High Street
New York Times, United States - 11 hours ago
Of course, buying a home is a more lengthy process than simply calling up a mortgage broker to refinance, and activity typically slows during the holiday ...
Long-Term Mortgage Rate Falls Again Wall Street Journal
Banks' mortgage rates fall below 5% Boston Globe
Homeowners with good credit scores are poised to capitalize on ... Baltimore Sun
Scripps News - AHNall 103 news articles
WJBF-TV
Bloomberg - 21 hours ago
The Mortgage Bankers Association’s index of applications to purchase a home or refinance a loan dropped to 1143.8 for the week ending Jan. ...
Mortgage rates fall to record low again Forbes
Freddie Mac: Benchmark mortgage rate continues to new low MarketWatch
Bold government action can solve housing crisis North Texas e-News
American Banker - Connecticut Postall 600 news articles
Stockton Record, CA - 4 hours ago
Under the Cardoza plan, the payment on that mortgage refinanced to 4 percent fixed rate would drop to $1194 a month. Contact reporter Bruce Spence at (209) ...
Reuters - Jan 7, 2009
The jump in applications during December may have been driven by homeowners already "on the fence" and prepared to refinance on a drop in mortgage rates, ...
Mortgage applications down in latest survey Forbes
Week-to-week mortgage applications down 8.2% MarketWatch
Fewer apply for home loans; credit line delinquencies increase Los Angeles Times
KVOA.com - Kansas City Starall 63 news articles
Boston Globe
Bloomberg - 7 hours ago
... to purchase or refinance homes,” Rosengren said. The average rate on a 30-year fixed-rate mortgage dropped for a 10th week to 5.01 percent yesterday, ...
Rosengren sees path to recovery Boston Globe
Fed's Rosengren says recession more severe than thought Reuters
all 54 news articles
Los Angeles Times
Wall Street Journal - 11 hours ago
"Despite efforts by Congress to address this issue, not enough lenders have come to the table to help borrowers with bad mortgages refinance into new, ...
Video: Business Update:Foreclosure aid? ReutersVideo
Citigroup reaches agreement with key senators on mortgage ... Minneapolis Star Tribune
Citigroup agrees to allow judges to help modify some mortgages IdahoStatesman.com
all 567 news articles
TopNews
Boston Herald, United States - Jan 1, 2009
If I refinance the mortgage on my current house, will I hurt my chances for getting a loan for a new place later on? A: No. Refinancing a loan shouldn’t ...
MORTGAGES: 30-year Mortgage Rate Falls For Ninth Straight Week To ... CNNMoney.com
Mortgage Rates Hit 37-Year Low Poynter.org
Mortgage Rates Down Again After Rising Above 5.00 Percent Last Week PR-CANADA.net (press release)
Wall Street Journal - Ventura County Starall 457 news articles
Plano Star Courier, TX - 17 hours ago
“Quite a few people have remortgaged,” said Craig Jarrell, loan officer with Pulaski Mortgage. “Most people who refinance are new homeowners as recent as ...
Cincinnati.com, OH - Jan 3, 2009
... 2009 With US mortgage rates the lowest in 30 years, local lenders say they've seen a strong surge in loan applications as homeowners seek to refinance ...
Waco banks seeing a boom in mortgage refinance applications Waco Tribune Herald
Borrowers seeking to refinance may face challenges WTOP
As mortgage rates slide, refinancing applications take off Dallas Morning News
all 15 news articles
7 Credit Improving Steps You Must Take Before Applying For A Mortgage
If you think you have good credit, think again. Chances are there is something on your credit report that can effect your credit rating; this type of... Read More
Securing a US Commercial Mortgage
What's the most efficient way to secure a US Commercial Mortgage? Work with a mortgage broker who specializes in this area. If you've ever applied for a... Read More
Mortgage Loans For People With Adverse Credit - How Much Should You Borrow
"How much should you borrow?" is a question people with adverse credit wrestle with. The answer is simply as much as you can afford. This is probably... Read More
The Real Truth About Those: Online Get a Better Loan Web Sites - 6 Things to Look For
You have seen the Commercials on TV go this or that web Site and Refinance your Home and Save thousands. Tempting isn't it? Do they really save... Read More
Home Equity Line of Credit - Finding The Best Home Equity Lender
Borrowing against the value of your home using a revolving credit account is known as a home equity line of credit. Lenders offer home equity lines of... Read More
Repayment Remortgages is The Cure For Outdated Endowment Policy
If bulls and the bears of the stock market have no effect on your mortgage plan then you must apply for endowment to repayment remortgage. An endowment... Read More
How to Find the Best Home Improvement Loan
If you're looking for the best home improvement loan for your money it can sometimes seem like an uphill climb. You may not know whether the offer... Read More
Guide to Mortgage Terms
Listed below is a guide to mortgage terms. It is a useful list of definitions of mortgage terms that may or may not be familiar to you.AprThis... Read More
Sub-Prime Mortgage Company - 4 Signs of a Predatory Sub-Prime Lender
If you have bad credit and are looking to get a home loan, odds are, you are going to be applying with a subprime lender. Subprime lenders... Read More
Buy To Let Mortgages ? To Let in Reasonable Capital Growth with Financial Obligation
Every individual needs a home and every home needs an owner. Perhaps you are already a homeowner. If you can afford why not buy a home and... Read More
Mortgage Broker or Assassin? A Banker Who Offers You This Loan May be Trying to Kill You!
What if a banker or mortgage broker told you he's loan you 25 percent above the value of your home? You might think it sounds great, but... Read More
Mortgage Advice To Make Mortgages A Really Smooth Ride
Mortgages are easy as long as you understand them well. But how many borrowers can be confident of their knowledge of mortgages.With the list of terms and... Read More
High Risk Mortgage Lenders - Using a Sub Prime Lender Online
Sub prime lenders handle high risk mortgage loans that traditional lenders refuse to touch. Through slightly higher interest rates, sub prime lenders protect themselves from the higher... Read More
4 Things to Watch Out for When Choosing a Mortgage Company
We all know that there are a lot of mortgage companies out there. But how do you know which company to choose? Some companies have flashy advertisements... Read More
How Good a Deal Is Your Banks Mortgage Insurance Plan?
When you go to the bank to get a mortgage, you'll inevitably be asked to take out mortgage insurance. The idea behind mortgage insurance is simply that... Read More
Real Estate Finance Strategy that Few People Consider
If you are considering a new home loan anytime soon, and you do not want to get an adjustable rate mortgage (remember, ARMs are very strong loans),... Read More
Selecting the Right Mortgage for You
A mortgage is a loan you take out to buy a home. This loan covers the "principal" (purchase price of the house minus your down payment) plus... Read More
Mortgage Debt Elimination
The prospect of mortgage debt elimination is something that many Americans are dealing with today. If you are concerned about your current debt situation, constantly trying to... Read More
Think You Cant Get a Mortgage?
You've finally found that dream home that you have always been searching for, but you are afraid to apply for a mortgage because you have bad credit... Read More
Where To Find The Best Rates For Your Mortgage?
As with all of my articles this will be based on a scenario in my home town. (Which may be similar to yours).Loans and mortgages can be... Read More
Bad Credit Remortgage Loan: When Bad Credit Plays Mischief With Your Mortgage
Financial difficulties are married to bad credit. It is a tough marriage but can be peaceful with a little bit of counseling. The recommended counseling in case... Read More
Kings Bay Saint Marys & Kingsland Georgia Real Estate - Getting a Home Loan with Damaged Credit
So, you have made the decision that you would like to become a homeowner. As lenders, we have to perform a credit check. The credit we review... Read More
Buying a Home After a Foreclosure
Buying a home after a foreclosure is not an impossible task. With some careful planning and some savvy shopping, you can secure a mortgage loan even with... Read More
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... Read More
Refinancing and Car Finance - Is it worth it?
Refinancing and Car Finance - Is it Worth It?No doubt you have heard of refinancing your mortgage. It has become all the rage, but now you can... Read More
Home Equity Loan Improvements
There's more Regulation Z compliance on the way, courtesy of the Home Equity Loan Consumer Protection Act. This fall banks will have to implement the new home... Read More
7 Credit Improving Steps You Must Take Before Applying For A Mortgage
If you think you have good credit, think again. Chances are there is something on your credit report that can effect your credit rating; this type of... Read More
Online Mortgage Loan Companies Are Convenient
There are many reasons to use the internet to take care of your mortgage loan needs. Online mortgage companies can give you quick answers to your mortgage... Read More
Is the Inverse Mortgage a Scam? New Program Promises Mortgage Payoff inside of 5 Years
If a mortgage could be paid off in five years or less, without it costing homeowners an extra cent, why wouldn't every homeowner in America be doing... Read More
Remortgage To Release Equity By Improving Interest Rate
You have been paying on your mortgage for quite sometime and you think that your money serves no purpose except paying for your loan. This you already... Read More
Adjustable Rate Mortgages Offer Alternatives For Home Buyers
When looking for a mortgage to meet your needs, consider these key questions: Is your income expected to increase in the coming years? How long do you... Read More
Mortgage Brokers or Banks: Which is Right For You?
When you're looking for a home loan, you might work with an officer at a bank or other lending institution, or you might choose to work with... Read More
Buying a New Home ? Home Buying Tips
If you in the process of looking for your first home, there are some essential steps that you should be aware of. Many times, people fall in... Read More
A Guide to Getting Bad Credit Home Improvement Loans
You might be wanting to look into bad credit home improvement loans but are unsure of where to start. After all, how do you get a good... Read More
Bad Credit Mortgage Loans ? How To Get Approved
Persistence is the key working toward getting approved for a bad credit mortgage loan. There are many factors that you, as a borrower have control over that... Read More
Is It Time To Buy A House?
At some point as you're writing out your rent check, you get to the point where you look at the amount and think to yourself - at... Read More
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... Read More
Buying A Home After Bankruptcy - Get A Mortgage Loan After Bankruptcy
If you have a recent bankruptcy on your credit and are looking to get financing for a home, there is hope. Buying a home with bad credit... Read More
Bridging Finance Basics
Bridging finance is a short-term loan that is used as a way to provide funding for the purchase of a new property while the borrower awaits the... Read More
Home Mortgage Loan Pre-Approval Online ? Keys When Applying For A Mortgage Online
Applying online for a mortgage is very fast and easy. Just make sure of a few things before you start to look for places to apply to.... Read More
Mortgage Information
A mortgage is borrowing money using property as a security, a type of secured loan in other words. Primarily, the purpose in borrowing the money is to... Read More
Biweekly Mortgage
The biweekly mortgage has been around for years but with the recent media attention to the real estate industry in general and the mortgage industry in particular,... Read More
Refinancing Your Home Mortgage - Get Up To 125% Cash From Your Homes Value
With the low interest rates being offered by lenders today, now can be the perfect time to refinance your existing mortgage. Remember that you do not have... Read More
Mortgage and Credit Card Companies Under the Spotlight on Consumer Charging
For the first time since May 1996 reports have indicated that wage increases have risen faster than house price inflation. According to Nationwide, "The overall picture remains... Read More
What is an Interest Only Mortgage?
An Interest Only Mortgage is one where the repayments are made up entirely of the interest on the loan. When the mortgage term is complete, the capital... Read More
Uk House Price Increases Take A Summer Holiday
Property website Rightmove has released its latest house price index announcing a "Summer sale" for house buyers. The report shows that on average, house prices fell by... Read More
How To Save Thousands in Interest on Your Home Mortgage!
So you have a mortgage on your home or planning to get one? Here's something to consider if you want to reduce your interest payment and save... Read More
Sorting through mortgage elimination programs
Mortgage elimination programs are all the rage these days. In the event that you don't know what they are, it's a really basic concept. You apply more... Read More
Repayment Remortgages is The Cure For Outdated Endowment Policy
If bulls and the bears of the stock market have no effect on your mortgage plan then you must apply for endowment to repayment remortgage. An endowment... Read More
Home Loans and Mortgages ? Tips to Avoid Foreclosure
Today's real estate market is a volatile one; prices are at record levels and Interest rates are favorable, but foreclosures are increasing. Wages haven't kept up with... Read More
Secured Lending - a Guide to Releasing the Value in Your Home
The recent boom in house price values have made some homeowners more wealth than they could have possibly earned though working in their jobs, however what use... Read More
Home Loans and Mortgages ? Watch Out for Dangerous Subprime Loans
With the growing interest in real estate purchasing and speculation, more and more lenders are offering "nontraditional" types of mortgages. These include adjustable rate mortgages (ARM) of... Read More