Mortgage Broker: Their role in your savings
When it comes to making investments, buying a home is most probably one of the biggest purchases the majority of individuals are about to make. For the great majority, paying for a home in cash is not ideal, so we opt to purchase it with a mortgage. There are numerous determining factors on how much mortgage you’re about to pay versus the price of the home if you pay for it in cash.
This is where a mortgage broker comes into the scene. He/She is responsible for helping you find a home that suits your budget, and at the same time, a home that meets your needs while making sure that the additional costs are minimized as much as possible:
1. Down Payment
If this is your first time making a purchase, you might be required to pay for a 20% down payment equivalent to the house’s purchase price before a financing option is offered. If this isn’t your first time, however, the down payment percentage might vary depending on the mortgage lender and your financial standing.
A mortgage broker will help you find the perfect mortgage lender that offers the lowest down payment percentage, whether you’re a first-time buyer or not. For instance, Atlanta Mortgage Brokers will help you in finding mortgage rates and houses that are within your budget, and not the other way around.
2. Interest Rate
Your mortgage’s interest rate is one of the most significant deciding factors telling you how much you should pay your mortgage on a monthly basis. It is a fact that for the majority of home buyers, most of what they’re paying for during the first few years go towards the interest. Once the home buyer is done paying for the first few years, this is the only time that they’ll start paying for the principal mortgage (house’s actual value).
All home buyers want to get the best deals as much as possible with the lowest rates. You can save money by hiring a mortgage broker to help you find listings with the lowest rates.
Atlanta Mortgage Brokers have the best brokers in the city, with an exceptional understanding of how rates are computed for. This means that they can use this as an edge in helping you find the lowest interest rates for the homes that you’re interested in buying. They are in the position to make negotiations so you can get the lowest possible rates you can get for that specific home. Your mortgage broker can also help you decide whether you should go for either a fixed or variable rate, based on your needs.
3. Mortgage Terms
Your mortgage terms define how long you should repay the loan. Since house properties are considered to be large purchases, they may fall under long-term loans. They could range from anywhere between five to twenty years. However, it is not up to the lender how long the repayment period is – the mortgage lender is the one responsible for making an assessment and determines the mortgage’s duration. Basically, the longer the term is, the higher the more interest and miscellaneous fees there would be.
While short-term loans are the most practical when it comes to minimizing interest rates and fees, do keep in mind that short-term loans mean that you have to pay more monthly.
Working with a mortgage broker will help you structure the perfect agreement that has the best terms while trying to make sure that you are able to save costs on interest rates, fees, and any other additional charges it may incur.
Atlanta Mortage Brokers will assist you by assessing your financial standing and situation and find a mortgage that is aligned with your financial capability. This is to make sure that you get into a contract that is within your budget while ensuring that you save money at the same time.
If you want to learn more on how you can save money on your mortgage costs, give Atlanta Mortgage Brokers a call today. Whether you’re an existing home-owner looking to purchase your next property, or whether this is your first time, we can help you locate the perfect house with the perfect mortgage rates based on your needs.
Important Tip: Saving money on your mortgage can be done by repaying your dues as quickly as possible. When you have a shorter loan period, the interest fees are lower, which means you can get into paying your principal loan as soon as possible. If you have extra funds, putting it towards your mortgage may not be a bad idea.