When you need a mortgage,  how do you know which way to go and how to get the best deal?   Buying a home can be a very emotional decision, but the mortgage part of it should be about one thing:  “The Numbers”.  The purpose of a mortgage broker is to help you understand what these numbers are and find you the lowest ones, in every which way, by shopping as many lenders as possible for you.  After all, there’s the cost of the home AND the cost of the loan.  You want to minimize both.                                        Rate is important.  But the best deal is more than just about rate.     It’s also how much you pay for that rate.  Our government invented “APR” to help consumers compare loan deals, but like so many things our government comes up with, APR is confusing. You’re much better off to just add up the total loan costs for any quoted rate, and compare that from lender to lender.   And assuming each lender/broker gives you the same figures upfront as you'll see on your closing papers, it’s foolproof.   But therein lies the problem:  Many borrowers find fees on their final loan papers that are significantly different than those on their original disclosures.  But by comparing your closing statement with the list of costs you were originally given on your Good Faith Estimate, you’ve a much better chance of understanding the discrepancy and correcting any mistakes than with something as inexplicable as an APR.   Getting to the point   Points of any kind are usually unnecessary.  All they do is lower your rate a bit.  A lower rate is better, especially over the long haul. But if you pay a point to lower your rate a little, and you don’t keep this mortgage for at least 5 years, chances are you’ve wasted money in two ways:  The money you paid and the investment income you could’ve earned on that money.  On average, people are only in their mortgages about 5 years.  Does it make sense to pay a large amount of money upfront to save a little bit of money each month?  You can only know by working “the numbers.”    You don’t have to pay even  1 cent for your loan   This is called a “no cost” loan.  If you are willing to accept a slightly higher interest rate, and therefore a slightly higher payment, your mortgage broker can pay all your loan costs.   This works best when you’re borrowing at least $300K and you’ll be keeping the property under 3-5 years.  We can work “the numbers” to see if this is the best way to go for you.   Can you buy a new home before you sell your old one?    In hot markets, if you find the home of your dreams but there’s another offer on it, you’re probably going to lose out if your offer has a sale contingency.  In this case you may want to buy your dream home before you sell your old one.  There are ways to do this, and some don’t necessarily involve many additional closing costs, or the need to refinance the new home once you’re in.  Ask us!      The Deal on Credit    Credit is king in the mortgage game.  With good credit, you'll not only get the best deal, but you can do almost anything, and do it easily.  But even if you’re sure you have good credit, don’t be!  Check it now and check all 3 bureaus.  Identity fraud is rampant, and it can happen to you.  In fact, the better your credit, the more attractive a target you are.   The good news is that if you are a victim of identity theft, it may only be an irritation and not a credit wrecker…if you catch it early.  And there are free safeguards you can take to protect yourself before it happens.  Ask us!   And if your credit isn’t perfect?   All the more reason the have it checked now by a professional broker who knows how it can be repaired.  There are often many things you can do now and be immediately “re-scored” for a better loan.  There are also people who can help you negotiate with collection agencies to settle your debts for less than you owe.    If your credit can’t be immediately repaired, you may require a “sub-prime” loan. These have less favorable terms than “prime” loans, but deals can vary drastically from lender to lender.  You’ll want a broker who’ll not only work hard to find your best deal now, but also set you on a solid path toward credit improvement, so you can get into a better loan in a year or two.  Let us help!   When should you refinance?     Since rates have recently increased, if you refinanced in the last 4 years or so, you will probably not be able to lower your rate now.  But if you’ve got heavy debt, it may still make sense to refi to pay off your other debt, even if it doesn’t lower the rate.    Reasons to refi now:  If you are only able to make the minimum payment on your credit cards, you'll never pay them off If you put your other debt onto your mortgage, you can deduct the interest on it from you taxes If you consolidate all your payments, such as car payments, into your mortgage, you can spread them out over 30 years, which can lower your payments dramatically Lowering your payments can dramatically improve your credit scores, thereby giving you better terms on any credit you apply for in the future   How can you tell if refinancing makes sense for you?   Only by working the numbers.  Let us help!     Investments & 1031s   There are many ways to go in order to produce the best ROI.  Ask us!   We’ve got creative strategies to enhance your financial picture    Whether you are buying your first home, a vacation home, building a home or purchasing a lot, refinancing to lower your payments, or  investing, we'll help with financing strategies to save you money.  Your mortgage should be a part of an overall financial plan to save, make and keep as much money on real estate as you can, while leveraging wisely.  Give us the opportunity to share what we think is your best mortgage solution for your situation. We’ll be happy to provide a free consultation, with no obligation, and a free pre-qualification if needed.