- March 4, 2016
- Posted by: Ethica Private Wealth
- Category: Info Articles
Going through the fine print on a mortgage can feel like a full-time job, as though you’d need a lifetime of experience in finance to make sense of the endless references, referendum, sub-clauses, and confusing jargon.
That’s why we have mortgage brokers, even in a world where most information is freely available at the click of the mouse.
Trusted, expert financial advice is a major blessing at the best of times. Considering that buying a home is one of the most serious investment decisions in anyone’s life, you’ll want to make sure you know what to ask a mortgage broker when you sit down with them.
Looking for a mortgage broker in the Sunshine Coast? Let us answer your questions to help you make the most sound financial decisions.
Questions To Ask Your Mortgage Broker
1. How High Is The Interest Rate?: This is probably the single most important question you should be asking your mortgage broker, that will quite literally shape the rest of your life. Not only does the Annual Percentage Rate (APR) help you decode what your payments will look like, over the years, the APR also helps differentiate between lenders by taking into account fees and and charges. The APR is the simplest way to compare lending companies.
2. What’s The Down Payment?: This question is almost as important as the APR, particularly for younger people without a huge nest egg to plunk down. As a general rule of thumb, 20% is a good down payment to strive for. A lower down payment doesn’t mean you won’t get the house, but it could impact other considerations, like an additional monthly Private Mortgage Insurance (PMI) payment.
3. What Are The Closing Costs? This question is important as closing costs tend to be some of the last figures to come to light, frequently at the last minute. You don’t want to go through the whole mortgage application process, only to find out at the last minute you don’t have enough to seal the deal.
4. Hidden Fees And Costs?: This question has been coming up more and more, in light of shady housing markets and mortgage lenders. They’re obligated to tell you, and any financial planner worth their salt will do their due diligence to chart where every single cent is going, to make sure you’re getting the best deal on your mortgage.
Want to find great mortgages in the Sunshine Coast? Let us help you find the deals, so you can get the home of your dreams!