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How to Spot a Good Mortgage Broker
from:With the FBI investigating some lending institutions and mortgage brokers, it becomes clear that most brokers do not represent anyone’s interests but their own. Mortgage brokers are regulated by state agencies but are not under any compulsion to get the buyer the best or safest deal. Brokers make money by closing deals for lenders or banks and then taking a commission or fees off the value of the loan from the lender. You may not realize that you are paying the broker, but they are getting paid. Some are getting paid by the borrower and the lender is paying others. In some cases, it was even shown that mortgage brokers might end up getting paid more if they steered clients to mortgage loans that had high prepayment penalties, making it difficult for the borrower to refinance later.
What a Broker Should Do
Mortgage brokers should assess your financial capabilities and try to find a market product that suits your present situation. The problem comes in when they are steering you to products that are risky. You also need to do your own homework in deciding whether any product offered is a good deal or not.
The broker works with a lending institution in providing the paperwork and application forms necessary to substantiate your income and ability to pay the lender. This can include all the copies of your tax returns, W-2s, and bank account statements. Be prepared to give your mortgage broker any type of document they need to apply for your loan.
What a Broker Shouldn’t Do
If you are not in a position to buy a home because of your income, steer clear of any mortgage broker that fudges the numbers. The numbers are set so that you don’t borrow above your means. Lying on a loan can have serious consequences, both legal and financial. So, if you see a discrepancy between what you stated to your mortgage loan officer and the final paperwork, speak up before you sign.
If you are in a fixed rate loan with little incentive to refinance, you may still get brokers who call trying to sell you all the benefits of a refinance. Keep in mind that they are paid to close deals, not necessarily to make sure you get a better deal than the one you have.
The mortgage broker should also provide you with a good faith estimate and the cost of fees assessed to your loan before you close. Any paperwork that is missing or different at closing should be reviewed thoroughly before you sign.
Low Mortgage Rate News
Record-Low Mortgage Rates - Are They Hurting US Housing Market? - International Business Times
 International Business Times | Record-Low Mortgage Rates - Are They Hurting US Housing Market? International Business Times But on Thursday, the average 30-year mortgage rate hit a record low of 3.78 percent, according to Freddie Mac, the second-largest government mortgage buyer. That drop directly cuts into the profit margins for banks, who either hold the mortgages or try ... Low Mortgage Rates Helping To Sell Homes Mortgage Rates for 30-Year US Loans Fall to a Record-Low 3.78% Record Low Mortgage Rates: Basement for Sellers? |
Mortgage Rates: Low Mortgage Rates Attracting Borrowers to Mortgage Refinances - FreeRateUpdate.com
 San Francisco Bay Area Today (press release) | Mortgage Rates: Low Mortgage Rates Attracting Borrowers to Mortgage Refinances FreeRateUpdate.com Low mortgage rates remain stable and are attracting borrowers to mortgage refinances in larger numbers. According to the Mortgage Banker's Association's Weekly Mortgage Applications Survey released yesterday, mortgage applications increased 5.6% for ... Bankrate: Mortgage Rates Hold at Record Lows Rates are Great, Home Prices Less Filling Mortgage Rates Remain at Record Lows |
Record-low mortgage rates spur refinancing - The Hill (blog)
 New Zealand Herald | Record-low mortgage rates spur refinancing The Hill (blog) By Vicki Needham - 05/23/12 09:48 AM ET Record-low mortgage rates spurred the third straight increase in refinance applications last week as the housing finance market starts to rebound. Overall, mortgage applications increased 3.8 percent for the week ... MBA Weekly Survey: Refinance Applications Increase Because of Record Low ... Mortgage Rates: Low Mortgage Rates Push Existing Home Sales Higher HSH.com Weekly Mortgage Rates Radar: Fixed Mortgage Rates at New Record Low Again |
Real estate industry pushes Senate on refi bill - MarketWatch
 Washington Times | Real estate industry pushes Senate on refi bill MarketWatch Clogged mortgage pipelines have created headaches for hundreds of thousands of Americans trying to take advantage of low mortgage rates. (Photo: Joe Raedle/Getty Images) Appearing before the Senate Banking Committee, Mark Zandi, chief economist and ... Push intensifies to pass home-loan refinancing bill Mortgage Q&A: Borrowers hit by mess others made HARP 2.0: Good News For Home Owners Who Are Upside Down |
Mortgage rates fall to another record low - USA TODAY
 USA TODAY | Mortgage rates fall to another record low USA TODAY WASHINGTON (AP) – Average rates for 30-year and 15-year fixed mortgages fell to record lows for a third straight week. Mortgage rates fell to another new low this week, making houses more affordable for those who qualify for loans. US 30-Year Mortgage Rate Falls to Record 3.79 Pct. Mortgage Rates: Low Mortgage Rates Decrease Again to New Record Lows 3rd week of record low mortgage rates |