3 Ways A Mortgage Broker Can Save You Money
Buying a house is one of the biggest purchases most people are likely to make in their lifetimes. For the majority of us, the only way we can afford it is with a mortgage. There are a number of factors that determine how much a mortgage is going to cost you over and above the purchase price of a home.
A mortgage broker takes these factors into account in finding a mortgage that best suits the needs of a homeowner while ensuring they cut costs as much as possible:
3 Ways in which a mortgage broker can save you money in both the short and long term include:
- The Down-Payment
First time home buyers can often be required to provide a down-payment that is equal to 20% of the purchase price of a home before a mortgage lender will consider offering them finance to make a purchase. Experienced home buyers will also be asked to provide a down-payment that will vary depending on their financial standing and other factors.
A mortgage broker will identify mortgage lenders that require the lowest percentage down-payment for either first-time buyers or those who are buying a property for the second or third time. Atlanta Mortgage Brokers will find a mortgage that matches your finances and not the other way around.
- The Rate
The interest rate on your mortgage is going to be one of the most important factors that determine how much you are going to pay for your mortgage. In fact, for most home buyers, a greater percentage of the repayments are going to go towards paying off the interest for the fist few years before you start making a dent in the principle mortgage loan amount (the actual purchase price of the home).
Of course everyone wants the lowest rate possible. Your mortgage broker is in the unique position to negotiate the best rate for you. Atlanta Mortgage Brokers understand the factors that mortgage lenders take into consideration when deciding a rate for a specific home buyer and will use these to your benefit in finding the best rate for you. They will also help you determine the type of rate (fixed or variable) that will best suit your needs.
- The Terms
The term of a mortgage is the loan or repayment period. Mortgages are generally considered to be long term loans and commonly last anywhere from 5 years up to 20 years. It is however up to the mortgage lender to assess the length or duration of the mortgage. The longer the term, the more you are going to pay in interest and other fees.
While a shorter term is always desirable, it does increase monthly repayments. Your mortgage broker will help you structure a mortgage agreement with a term that is affordable while saving you as much money on interest, fees and other charges. Atlanta Mortgage brokers will assess your financial situation relative to the available mortgage terms to ensure that you can afford the repayments while saving you as much as possible on your mortgage.
Contact Atlanta Mortgage Brokers to find out more about the ways in which we can help you save money on your mortgage whether you are a first time home buyer, existing home-owner or are looking to buy a second or third property.
- Important Saving Tip From Atlanta Mortgage Brokers – The best way to save money on a mortgage is to repay it as fast as possible. Lowering that principle loan amount means you will be paying less interest and other fees that can go towards paying off the mortgage faster. Any extra funds or income should therefore always be paid into your mortgage.