In today’s tricky housing market, it is important to make sure that you are getting a loan that fits your particular financial circumstances. The last thing you want is settling for a loan that is incommensurate with your budget and that you can’t afford. However, a lot of the time synthesizing all this information can be very difficult if you are not an expert (and most people aren’t). This is where a mortgage broker can step in and offer their expertise, knowing full well the importance this decision has to your future and the pressure and anxiety that inevitably surfaces with the decision.
The professional mortgage broker has become increasingly popular in recent years primarily because of some of these difficulties. They act as an intermediary for the homeowner and potential lenders, analyzing their clients’ financial standing with a thorough and in-depth professional consultation in order to determine the best possible lending partner.
Most professionals offer multiple services, each of which are very different and demand precision and good decision making, including loans for first-time home owners, fixed-rates, refinancing, residential loans, Federal Housing Administration loans, and jumbo loans. Perhaps the most important of these services is for the first-time homeowner. The biggest obstacle of a first-time homeowner is figuring out what exactly they can afford, since this is likely the most significant (and complex) investment they have ever made. The professional mortgage broker is able to guide the first-time borrower through this stressful and exciting process, where otherwise the owner might very well be overwhelmed and be pressured into making a regretful decision.
Another important service a mortgage broker can offer is in refinancing. Because of current government regulations and historically low interest rates, now is an ideal time to refinance and see immediate savings. Through refinancing, people can lower their monthly lending payments, consolidate debt, and even pay off those pesky credit-card companies that have been damaging their credit scores for so long. And anyone can appreciate that.
A fixed-rate, sometimes just called a “plain vanilla” loan, is just what is sounds like — fixed. The borrower is going to pay the same amount of interest every month regardless of ulterior circumstances. This is, of course, the alternative to the fluctuating interest of an adjustable rate, which changes with respect to an index that reflects how much it costs the lender to borrow on the credit market. Outside of the United States, fixed-rate loans are not as common, but in the U.S. they have become a very popular option. The most common terms are fifteen-year and thirty-year, but there are now shorter terms available and even forty and fifty-year options. Again, however, the average borrower will have a hard time deciding which option is the best fit for their budget and unique financial circumstances. A professional mortgage broker will help synthesize all the information and often-baffling mathematical equations. Sometimes it’s okay to ask for help, particularly when your financial future is on the table.