Should You Refinance Your Mortgage Using a Mortgage Broker?

Mortgage brokers are independent agents that match homeowners with mortgage lenders. Typically paid by commission these brokers work with mortgage lenders to sell loans. Like any other salesperson mortgage brokers do not necessarily have your best interests at heart; they are in the business simply to make a buck. Because of this you may encounter brokers that push loans using high pressure sales tactics. Mortgage brokers are a dime a dozen so don’t fall for slick sales tactics or pressured sales tactics.

Good mortgage brokers have extensive connections in the mortgage industry. This is extremely helpful if you are trying to find a mortgage with a poor credit rating. Your mortgage broker can find a variety of lenders that specialize in subprime mortgages to help with your poor credit rating. If you have good credit, brokers can offer a variety of loan packages for your circumstances as well.
Should you rely solely on a mortgage broker? Probably not, look at a broker as one more source for your mortgage search. You shop from a variety of lenders and brokers to ensure you will find the best deal for your mortgage. If you don’t have the time to devote to researching mortgages lenders a broker can do the legwork for you; however, you will accepting the brokers word that the loan you accept is the best one for you.

The first thing you need to ask your mortgage broker is what their fee is and who pays it. By shopping from a variety of brokers and lenders you will be able to gauge what the going rate for a mortgage broker’s services is. By shopping from a variety of brokers and asking for references you can find an honest mortgage broker.

Louie Latour has twenty years of experience in the mortgage industry as a mortgage broker. He is the owner of Mortgages for Dummies, a mortgage help site devoted to saving homeowners money with a free guidebook “Five Things You Need to Know Before Refinancing a Mortgage.” Sign up for your free mortgage guide today at: http://www.refiadvisor.com

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