Mortgage Broker 101: Better Know Who Is Handling Your Mortgage Refinance
October 31, 2008
Here’s a true story, no scratch that, a factual warning about a mortgage industry “bad apple” out there, calling himself a mortgage broker. If you are considering any mortgage transaction, please read this article.
The Situation:
One of our website visitors recently submitted a question about her specific mortgage situation. For privacy reasons, I won’t share her real name, so let’s just call her Sarah.
Something wasn’t “sitting right” with Sarah about a refinance deal she was putting together with her then mortgage broker. So Sarah wisely decided to get a second opinion about how her current mortgage broker was structuring her refinance deal.
Sarah mentioned that this particular mortgage broker had set up an insurance premium on the deal of nearly 24K plus was charging her an additional $1500 broker fee. Sarah asked me if I thought she was being – in her words - “screwed” and I said – “with out a doubt – yes”!
Sarah then asked me to take a closer look at her refinance deal.
Need to unlock your home's equity - but have a few questions? Why not consider a free private email consultation with me, Darrin Roseborsky? There's no obligation or commitments to worry about. Just helpful answers to your questions. Use the short form in the top-right corner to get started. And in a few minutes, you'll have the answers to all of your questions.
Mortgage Advice. 5 Things You Can Do Now to Prepare for Financial Crises
October 27, 2008
If you’re afraid that the economic tailspin affecting governments around the world will affect your own financial stability, here is a little mortgage advice that can help you take positive steps to securing your financial future. Solid planning starts with prioritizing your budget and deciding what’s important – and what’s expendable.
While we’ve largely escaped the financial crisis that has all but toppled America’s economy and threatens the economies of dozens of other countries, there are no guarantees. If you haven’t yet formulated a financial survival plan, you should begin now. Here’s mortgage advice you should follow:
Is A Home Equity Loan Smart? Q & A With Darrin
October 23, 2008
Question: Hi Darrin, I heard that it’s not smart to use a home equity loan to pay off other loans because I’ll always spend more on interest by doing that. Is that true? Thank you, Joshua
Answer: Hi Joshua, Great question! What you’ve heard isn’t necessarily the whole story. You really need to look at the whole picture and analyze your financial situation to determine if a home equity loan is the smartest move for you.
Your other loans almost always carry a much higher interest rate than a home equity loan would – and the payments are usually pretty high.
Canadian Economy: 5 Ways To Prepare For The Rough Ride!
October 21, 2008
I do a lot of reading, and like most people I am trying to stay on top of the mess happening in the U.S economy, and of course, how it will impact the Canadian economy over here.
I came across an article from reportonbusiness.com yesterday that supports the idea that the Canadian economy is not in a recession. And by true definition of a “recession” maybe the people over at reportonbusiness.com are right…. However…
Banks Push Fixed Mortgage Rates: But Is It Right For You?
October 20, 2008
Just thought I’d write a quick comment about an article I read the other day about fixed mortgage rates. Here’s the article:
Fixed Mortgage Rates Article - Windsor Star
The main focus of the article is about Canadian banks urging consumers to lock in their mortgage rates, other wise known as fixed mortgage rates. What a terrible idea this is!
Mortgage Refinance Q & A: How Quickly Can I Refinance Again?
October 15, 2008
A recent question was emailed to me about mortgage refinance timing.
Question: “Can my mom mortgage refinance her home to help me pay off my debt and I pay her? What if she already re-mortgaged one time already? How long before she can do it again?”
Read more
Question For Darrin - Can a Home Equity Loan Really Help Me Get Out of Debt Sooner?
October 10, 2008
Question: Hey Darrin, I’d like to know more about a home equity loan. More specifically, I’m in a little over my head with credit card debt and the minimum monthly payments are getting harder to handle. What good would a home equity loan really do me? Won’t it take longer to pay off a home equity loan to get out of debt? And how do I avoid repeating the process again in a few years?
Thanks, Jeff
Answer: Hi Jeff, That’s a great question! Millions of Canadians struggle with runaway credit card debt issues. A good home equity loan really can help you get back on track several ways:
Late Payment Fees: 3 Tips To Use When It’s Not Your Fault
October 7, 2008
Your phone rings and you’re surprised to hear that it’s your credit card company telling you that your payment isn’t large enough to cover your minimum monthly payment - and now you have late payment fees. You very confidently tell your credit card company that they’re mistaken and you demand that they double check their records. They do and the response is the same.
According to their records you’re late – and as a result you’re being hit with a late payment fees and another ding on your already-battered credit report.
Read more
Fed’s Slashed Rates In The U.S - Should Canadians Refinance Now
October 3, 2008
The Wall Street Journal had an interesting article on refinance interest rates back in January:
Fed’s Slashing Rates: Is it time to Refinance?
Even though this is US based and is a little different than things here in Canada, I totally agree with the fact of not trying to time the interest rates. It’s like chasing a carrot on a stick. In Canada, right now, what is effective is the variable rate option. Because right now it is about 1.00% lower than the fixed with an anticipated drop of .50% in the next few months.
The variable can also be changed to the best available fixed rate at no charge which would allow people to fight the rate increase if necessary. I think what people need to focus on when refinancing is a payment they are comfortable with not necessarily a rate or amortization.
Darrin Roseborsky - HomeRefinanceCoach.com
