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Don’t Be Lured By Interest Rates!

September 26, 2011

In today’s market, rates have never been more competitive amongst our lenders

Quality mortgage advice is of the utmost importance today. Don’t forsake quality mortgage advice for sleekly advertised bank rates. In the long run, the quality mortgage advice you gain from a trusted mortgage broker will always outweigh any perceived value believed to be gained from tantalizingly low interest rates advertised from the bank.

Why? Because exceedingly low interest rates typically come with mortgage terms and conditions that cost the consumer thousands of dollars over the term of your mortgage. It is not uncommon for quality mortgage advice from a trusted mortgage broker to save a consumer between $5,000 – $40,000 over a five year mortgage term simply by helping you see beyond the lure of a low advertised rate and helping you find the best mortgage rate, terms and conditions that will keep more money in your pocket and NOT YOUR BANK’s!

Mortgage advice should take into consideration more than just rates.

Here are a couple of tips on how to know you have the right mortgage broker who will provide you with quality mortgage advice and not just sell you on the lowest rate. If providing quality mortgage advice, the mortgage broker or mortgage agent should:

Provide mortgage advice which helps you understand the contract you are signing. With the right mortgage advice, your broker should be able to point out details in your contract that will not only help you save time and money in the short and long term of your mortgage.

Provide mortgage advice which helps you understand what type of charge the lender is placing on your mortgageWith the right mortgage advice, you should know whether your mortgage is portable or assumable, and what the conversion rate is if you ever decide to lock into a fixed rate down the road. Many mortgage brokers won’t take this extra step for you – their mortgage advice will stop short of these details.

Mortgage advice should include the types of penalties you might incur if they advise you to take a fixed rate mortgage over a variable rate mortgage. Here’s a free piece of mortgage advice: Only about 30% of all mortgages go to term! If you ever decide to make a switch, the right advisor would include mortgage advice about mortgage penalties to save you any unsuspected headaches or surprises in the future.

Mortgage advice should include a run-down on current market conditions and what the impact of today’s economy has on you as a borrower. If you feel your mortgage broker isn’t knowledgeable enough in regards to the market to provide this mortgage advice, consider going elsewhere.

The right mortgage advice should educate you on today’s competitive mortgage market by looking at historical information and statistics. This is another piece of mortgage advice that agents often leave off the table; this kind of information should help you grasp what could happen in the future.

Lastly, quality mortgage advice will show you how you can control your mortgage and what happens to it. With the right mortgage advice, you prevent the bank from bossing you around when it comes to your mortgage. The right kind of mortgage advice can be very rewarding and freeing – after all, when it comes to your money, you should be loyal to yourself first.

Best of luck in your search and remember the cheapest rate isn’t always the most inexpensive one! Arm yourself with invaluable mortgage advice and help buff your bottom line, not your bank’s.