Mortgage Broker

What is a mortgage broker and why should I use them?

Most purchasers would automatically go to their financial institution to negotiate a mortgage. The other alternative is to talk to a mortgage broker. For those who are interested in obtaining a mortgage, - be it financing, renewal or pre-approval, a mortgage broker is an excellent option. Mortgage brokers are qualified individuals who are experts at matching a borrower with a lender. The broker's services cost you nothing, (on approved credit), because the institutions pay the brokers fee's. Mortgage brokers know the market and are familiar with the various products offered by all lending institutions. Not all mortgages are the same. Because of this, they are generally able to offer their clients a better interest rate than that "posted" by the financial institutions themselves. In all cases as an informed purchaser you should look at all the available options. A difference of even half a percentage point can make a huge difference in how much you pay over the life of a loan. For example, the difference in the monthly payment on a $100,000 mortgage at 8 percent vs. 7.5 percent is about $35 per month. Over 30 years, that's $12,600.