5 Things Mortgage Brokers Don’t Want You to Know
5 Things Mortgage Brokers Don’t Want You to Know
5 Things Mortgage Brokers Don’t Want You to Know
Free Online Articles Directory
Why Submit Articles?
Top Authors
Top Articles
FAQ
AB Answers
0 && $.browser.msie ) {
var ie_version = parseInt($.browser.version);
if(ie_version Hello Guest
Login
Register
Hello
My Home
Sign Out
Email
Password
Remember me?
Lost Password?
Home Page > Finance > 5 Things Mortgage Brokers Don’t Want You to Know
5 Things Mortgage Brokers Don’t Want You to Know
Posted: Jul 18, 2008 |Comments: 0
| Views: 488 |
]]>
Copyright (c) 2008 Nick Kent
Let’s face it folks, our country’s economy isn’t the best it’s ever been, and a big part of the problem is the state of our mortgage market. How did it get to be this way? Well, a big part of the problem is that mortgage brokers are not providing all the information consumers need to make a good decision. The bigger problem though, is that we aren’t asking them the right questions! No one prepares us for these things, so we can’t really be blamed, but it doesn’t matter if we’re at fault when it comes to our money. Luckily, reading this article will help you figure out what information you need to make an informed decision.
Here are 5 pieces of information to demand of your mortgage broker before signing anything:
1) Yield Spread Premium – This is what the broker gets paid for marking up the rate of the loan above wholesale. The more of a markup, the more they get paid. It’s the same concept as a car salesman being paid more based on how much more he’s able to convince his customer to pay above sticker, only the salesmen is your broker, and the desk manager is the lender. There’s nothing wrong with the broker making a living, but it’s perfectly fair to negotiate this figure, to protect your own financial wellbeing.
2) Current Wholesale Rates and Par Pricing – When a broker hears “What are today’s rates?” what they’re really hearing is “What rate would you like to sell me today?” When you’re asking about rate, make sure to be more specific. “What’s today’s wholesale rate for a 5 year fixed at par pricing?” It’s critical to mention par pricing, as that’s the actual wholesale rate before any broker markup.
3) Mortgage Loan Disclosure Statement – It’s all very well to accept what your being told at face value, but as my father always said, “a verbal contract isn’t worth the paper it’s printed on.” Brokers will be more than happy to offer the consumer a GFE (Good Faith Estimate), but GFEs leave out some valuable information, like the YSP. You’re entitled to an MLDS, so make sure you get one.
4) Origination Fee – Make sure to take a look at the origination fee on the MLDS. Despite anything your broker tells you, this money goes directly to the broker’s coffers, and is entirely separate from the YSP. Your broker’s goal is to make a point in front and one in back. That’s ridiculous. In total, a point is reasonable, in a ratio negotiated between the you and the broker.
5) No Fees/No Closing Costs – Nothing else in life is free, why would this be? Do you think the appraiser and underwriter are going to work pro-bono? Between the notary, escrow, title and other various services you’ll need, the entire cost will be close to 00. Obviously, “No Fees” companies make money elsewhere. Elsewhere would be the YSP. Sure, the deal may look great from the front, but the broker’s surely making a killing on the back end.
Understanding these 5 key items will help you protect yourself from being taken advantage of. Be aware in advance; most brokers won’t like being asked these questions, but what’s more important, their friendship, or your financial wellbeing?
Retrieved from “http://www.articlesbase.com/finance-articles/5-things-mortgage-brokers-dont-want-you-to-know-488514.html”
(ArticlesBase SC #488514)
Liked this article? Click here to publish it on your website or blog, it’s free and easy!
Nick Kent -
About the Author:
Rate1st.com provides a safe, simple, and efficient way for borrowers to compare rates from hundreds of lenders without compromising their personal contact information or credit. For more information on home mortgage loans visit http://www.Rate1st.com.
]]>
Questions and Answers
Ask our experts your Finance related questions here…200 Characters left
What is the best way to break into the commercial mortgage broker business?
How many mortgage brokers in the us ?
I dont know how to wite a letter ,how i meet him, i fell in love, got married and now want to settle with him in australia ,can you help me pliz.i me him wen he was working in fiji on work permit
Rate this Article
vote(s)
0 vote(s)
Feedback
RSS
Print
Email
Re-Publish
Article Tags:
home mortgage, home mortgage loan, mortgage loans, home mortgage calculator, home mortgage rates, bad credit mortgage loans, type mortgage loan, american home mortgage
Latest Finance Articles
More from Nick Kent
Home Loan Mortgage Choices for your Next Home
Know the mortgage home loan choices before you get your next mortgage loan (04:20)
How to Lock Your Mortgage Rate Before Lender Hikes It
Video explains how to lock a fixed rate mortgage on a home loan currently in the application process before you are caught by surprise when a sudden home loan rate increase takes place. The video tutorial also introduces a new daily real-time mortgage rate alert service for home buyers and those refinancing their current mortgage. (01:48)
Learn about Mortgage Rates and Points
Video explains with examples why mortgage points matter. Points are what actually move each business day since the actual rate is always available. It’s just a matter of how much it will cost you to obtain the rate. The video tutorial also publicizes a new daily real-time mortgage rate alert service for home buyers and those refinancing their current mortgage. (02:19)
Whether you’re buying a home, refinancing your current home or consolidating debt there is a mortgage loan for you regardless of your past credit history. Options are available for borrowers with credit scores as low as 350! (05:25)
Khan Academy Presents: Simple example of borrowing from equity to fuel consumption (08:36)
Insightful Tips For Eliminating Bad Credit
Bad credit also known as subprime credit in the mortgage industry, will affect your pocket book in more ways than making it more difficult for you to get a home loan. Not only will you have a higher interest rate on your mortgage but it will also translate into higher…
By:
Dave Cahilll
Financel
Dec 14, 2006
lViews: 108
Take the Quick Road to Eliminating Bad Credit: Insightful Tips to Get You Started
Bad credit also known as subprime credit in the mortgage industry, will affect your pocket book in more ways than making it more difficult for you to get a home loan. Not only will you have a higher interest rate on your mortgage but it will also translate into higher interest rates on car loans, store credit
By:
Jarred Sadlerl
Financel
Sep 25, 2010
A Guide to Bad Credit Finance Options
Have you been trying to find out what bad credit finance options were available? Perhaps you’re in the market for a new car or truck, but aren’t sure if you can find a dealer or lender who’ll offer you a bad credit finance?
By:
Jasl
Finance>
Creditl
Mar 19, 2008
lViews: 559
Why Should I Worry About My Credit Score?
The Fair Isaac Coporation, creators of the FICO credit scoring system, recently discoverd that 49% of people polled did not know that credit scores measure credit risk. Even if you already know the basic facts about credit, you may not realize the impact credit can have on your life, and…
By:
Ryan J Belll
Financel
May 06, 2009
lViews: 142
It’s the Income, Stupid. Thoughts on Fixing the Subprime Mortgage Crisis
The subprime mortgage crisis is affecting all of us economically while investors take a deep breath claiming that they see daylight ahead. Many economist feel that what they are seeing is only the eye of the storm and the worst has yet to come.
By:
Aubrey Clarkl
Finance>
Mortgagel
May 19, 2008
Home Loans 101: Buying, Refinancing & Getting Lenders to Say Yes
If you want to minimize your time spent working with home loan lenders and start enjoying your home faster, it
By:
Andrew Daiglel
Financel
Oct 12, 2007
Consumer loans serve specific needs
With the economic climate showing few signs of improving, there is one bright spot… consumer loans are available at generally lower interest rates than three years ago. But here’s the problem: some lending institutions are making loans, and some aren’t.
By:
Joel Weaverl
Refinancing your Mortgage – let’s get started!
Mortgage will not change but will definitely give the loaner peace of mind throughout the loan.
By:
mohanchenl
Marketing>
International Marketingl
Aug 10, 2010
Ridding the Planet of Back Pains – Teeter Hang Ups Gravity Boots Evaluation
special synthesized plastic that’s more resilient than the strongest nylon and vinyl backrests.Whenever you choose an inversion table, select the one with the most effective standard of high quality, security, and durability, as these will ultimately pay off by way of safety, and comfort. Teeter Hang Ups EP 550 is among the best therapeutic devices for folks with back pains.
By:
RichardSchwartzl
Financel
Jan 07, 2011
Find the correct Organization to Finance Your car or truck
Now you are to get vehicle, but wait , how to finance an auto for those who have low credit score?
By:
bramantyaprakusal
Financel
Jan 07, 2011
Buying Stocks in Hong Kong – Finding Ways to Profit from Chinese Stocks
Stocks in Hong Kong are traded on the local stock exchange, but many such listed shares are also available to trade globally on other exchanges. Because of the differences in rates and trading order flow imbalances trading opportunities between exchanges appear. Listing Shares Globally Opens a World of Capital to Asian Multinational Companies
The principal reasoning behind listing shares globally on multiple exchanges is that it provides lower cost of capital access to capi…
By:
Steve Wisel
Financel
Jan 07, 2011
How to Get Rich – Earning More Money With a Second Job
In case you are wondering how to earn more money as a supplemental income, know that there many options available to you. Here are a few tips and strategies that could help you to get started in finding a second job, which could be the answer to your question – how to earn more money. These are simple and good ways in which you can earn a second income without much hassle.
By:
CaolanPatrickl
Financel
Jan 07, 2011
How to Become Rich – Great Ways to Earn More Money With Your Skills
For those who have full time jobs but still ask how to earn more money, part time jobs that are not very taxing are an option. If your day job has a regular schedule you can use the remaining hours that you can spare to make money if you are an organized and disciplined person and if you have the right skills. Internet is full of ideas and answers to the question – how to earn more money.
By:
CaolanPatrickl
Financel
Jan 07, 2011
Quick Tips To Getting A Great Car Hire Service
Whatever your reason for visiting Israel, be it business or leisure you should always do through comparison shopping before you make the final decision on a car hire in Israel. This article will guide you on how you can find a cheap car hire in Israel with ease.
By:
JessicaMoorhilll
Financel
Jan 07, 2011
Redundancy Insurance: Escaping the Tough Times
With various countries of the world facing sudden economic catastrophes, a lot of people losing their jobs unexpectedly as an effect of the depressions have become common. This is not only witnessed in the developing nations but has become quite common in the scenario of the developed nations too.
By:
Kirthy Shettyl
Financel
Jan 07, 2011
Payment Protection Insurance: Safeguarding Yourself from Financial Threats
Numerous insurance plans have been designed by insurance firms so as to comfort the customers and ease them through difficult stages of their life.
By:
Kirthy Shettyl
Financel
Jan 07, 2011
Is Home Financing an Impossible Dream?
Everybody’s saying we’re entering a new Great Depression. But does that mean you can’t get a loan? No, it doesn’t, and this article explains why.
By:
Nick Kentl
Financel
Oct 29, 2008
This article briefly discusses the value of FHA loans during what may be the new Great Depression.
By:
Nick Kentl
Financel
Oct 13, 2008
FHA Loans: What Are The Benefits?
In uncertain times, it can be nice to have a little help. This article examines FHA loans, and whether or not they could be right for you.
By:
Nick Kentl
Finance>
Mortgagel
Aug 31, 2008
lViews: 123
In uncertain times, it can be nice to have a little help. This article examines FHA loans, and whether or not they could be right for you.
By:
Nick Kentl
Financel
Aug 27, 2008
Hard Money Loans for Your Business
Hard money loans aren’t for everyone, but they can mean the difference between bankruptcy and success. Are they for you?
By:
Nick Kentl
Financel
Aug 08, 2008
Hard Money Loans – the Answer to Your Problems?
Hard money loans aren’t for everyone, but they can mean the difference between bankruptcy and success. Are they for you?
By:
Nick Kentl
5 Things Mortgage Brokers Don’t Want You to Know
A short list of information you need when shopping for a home mortgage loan, and what it all means.
By:
Nick Kentl
Financel
Jul 18, 2008
lViews: 488
Add new Comment
Your Name: *
Your Email:
Comment Body: *
Verification code:*
* Required fields
Submit
Your Articles Here
It’s Free and easy
Sign Up Today
Author Navigation
My Home
Publish Article
View/Edit Articles
View/Edit Q&A
Edit your Account
Manage Authors
Statistics Page
Personal RSS Builder
My Home
Edit your Account
Update Profile
View/Edit Q&A
Publish Article
Author Box
Nick Kent has 7 articles online
Articles Categories
All Categories
Advertising
Arts & Entertainment
Automotive
Beauty
Business
Careers
Computers
Education
Finance
Food and Beverage
Health
Hobbies
Home and Family
Home Improvement
Internet
Law
Marketing
News and Society
Relationships
Self Improvement
Shopping
Spirituality
Sports and Fitness
Technology
Travel
Writing
Accounting
Banking
Credit
Currency Trading
Day Trading
Debt Consolidation
Insurance
Investing
Loans
Mortgage
Personal Finance
Real Estate
Taxes
Wealth Building
]]>
Need Help?
Contact Us
FAQ
Submit Articles
Editorial Guidelines
Blog
Site Links
Recent Articles
Top Authors
Top Articles
Find Articles
Site Map
Webmasters
RSS Builder
RSS
Link to Us
Business Info
Advertising
Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2011 Free Articles by ArticlesBase.com, All rights reserved.
California Bad Credit Mortgage Related Information
Category: Mortgage lenders
