20 Aug Are You Paying Too Much For Your Mortgage?
Mortgages are a significant outgoing for most, and it’s important that we pay as little as we need to, in order to avoid financial ruin. However, on occasion, small details within a mortgage contract may be overlooked and can lead to individuals having to pay an inflated amount, and this usually occurs when you don’t use the services of a mortgage broker.
Here are some of the main reasons why people might be paying too much for their mortgage:
An ARM wasn’t considered
Most homebuyers opt for a fixed-rate mortgage as it will guarantee to give them a consistent interest rate throughout the duration of the mortgage, but in some cases, an adjustable-rate mortgage could have saved them more money. Modern ARM’s are now much safer for homebuyers than they used to be and can be great for certain individuals and under certain circumstances. Your mortgage broker can give you the best advice as to whether a fixed-rate or adjustable-rate mortgage is best for you.
Points weren’t purchased
Purchasing discount points upfront can help you pay less interest on a home loan, if you can afford them. While for many, paying more upfront just for a small change in an interest rate doesn’t seem worth it, it can make a big difference long-term.
A broker wasn’t used
Mortgage brokers can help save you a lot of money over the duration of your loan, by explaining in detail, the pro’s and cons of each type of mortgage, and then advising you as to which gives you the best deal for your bucks.
The mortgage hasn’t changed to reflect circumstances
Multiple things can change throughout the duration of a mortgage, from interest rates to your own financial circumstances, and if you don’t consider refinancing at a lower rate, you could miss out on huge savings. By not stretching your mortgage out over a 30 year term, you might pay a little more in monthly payments, but you stand to save a large amount in interest, and your mortgage would no longer be a millstone around your neck for such a long period; you could be mortgage free in half the time.
Seeking help and guidance from a mortgage broker is essential if you want to get the latest, up-to-date information about mortgage rates, and could help save you thousands of dollars over the lifetime of your loan. If you’re concerned that you might be paying too much for your mortgage, reach out to a professional and experienced broker today, and see if they can help you make some much needed savings.