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Choose Wisely – A Comparison of Mortgage Brokers and Banks

Choosing between mortgage brokers and banks for getting your mortgage can be hard. Especially, if you don’t know where to start and what to look for. The moment that you know a comparison between mortgage brokers and banks, you will understand why it is recommended that you are going to a broker instead of going to a bank. Here are some things to consider, so that you can choose wisely between banks and brokers.

Interests rates can be high

When you are using a bank for your mortgage, you don’t really have an option when it comes to the number of interest rates that they offer. This is a take it or leaves it deal. And, these interest rates can be really high.

With mortgage brokers Melbourne, you will be able to choose between a couple of lenders that are offering great interests rates. And, normally the interest rates are a lot lower than what the bank will offer you.

Mortgage brokers assist you in finding the best deal

Going to a mortgage broker is really a great idea and highly recommended. This is because these mortgage brokers are going to assist you in finding the best possible mortgage deal. They are looking at the premiums that you need to repay, and they are considering the interests rate that you need to pay.

Then, they are giving you the final option to choose the one that will suit you best. …

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What are the benefits and limitations of a fixed rate mortgage and variable rate mortgage?

mortgage rate

When it comes to buying a house for yourself, few people can buy it outright unless they’re millionaires. Therefore most buyers will inevitable take out a mortgage when purchasing a house to cover the rest of its payment. But should you go for a mortgage broker that has a set percent you pay back or one with a changing percent? We explore this in more detail.

What is a fixed rater mortgage?

A fixed rate mortgage is where you and your mortgage broker agree on a fixed rate you will pay back over a set period of time. An example of this would be paying back of your total mortgage over a course of 5 years. If your mortgage value is $200,000, you would be paying $3,333 per month. The peculiar thing with a fixed rate is that with this kind of mortgage, you are paying off both the interest from the mortgage loan and your debt, so after the fixed time period (e.g. 5 years) you don’t owe anything to your mortgage broker. There is usually a special rate that incentivizes customers. However, if you try to opt out early, you will have to pay a heavy fine, which effectively locks a customer in for a committed payment.

What is a variable mortgage?

A variable mortgage is where you pay according to the US economy and how healthy it is. If the economy is looking profitable, your interest …

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