Be careful who you take refinance advice from

The marketplace for mortgages is very confusing, many people will try to con you. Perhaps they do not intend to be dishonest to you, they just don’t understand the mortgage system themselves. This is why you must be very careful who you listen to about your mortgage advice.

Anybody can tell you anything about mortgages, but that doesn’t mean that it’s correct. If you’re having a drink with your mate and they try to tell you what you should do, then you should take it with a pinch of salt. This is of course unless your friend has any experience in this area! This is exactly how you should evaluate advice from other people.

You should do your homework well in advance and research all of the different mortgages on offer, this should be more than enough to help you avoid a lot of the bad advice that people will try to give you. We will talk about some of the common pieces of bad advice that have been told over the years.

These mortgage experts can be found anywhere! They are in books about mortgages, articles on the internet and in magazines, and financial advisors. Most of these would be unwilling to put their money where their mouth is, because they simply don’t know what they’re talking about. This list is the advice that you should not believe.

? Don’t pay for your mortgage in advance if you earn more interest than you would be spending on your mortgage
? Don’t purchase a home on mortgage unless you intend to live in it for over five years.
? You will always have to pay a high interest rate if you have poor credit history
? You should choose a 30 year fixed interest loan when refinancing.
? Interest rates can only go up, they will never come down because we’re currently at very low levels.
? Your lender will be honest and will help you out when suggesting loans
? If you go bankrupt it will ruin your credit rating
? You shouldn’t touch variable rate mortgages with a barge pole.

Again these are things that you shouldn’t believe, these are things that many people have been told over the years.

Many people are advised not to buy a home unless they plan to live in it for over five years, however this isn’t always the case. Many people have made a fortune playing with the housing market.

Equally you don’t always have to pay a really high interest rate if you are suffering from a poor credit rating. Numerous other factors will influence the interest rate that you will actually pay.

Most people say that you can trust your lender, however many of them are on commission. They certainly won’t look after your interests when they stand to earn more money.

Tips mortgage companies don’t want you to know!

Mortgage brokers have a huge advantage when you are applying for a loan, this is because mortgages are their life. They know everything about mortgages and so can make a lot of money due to your lack of knowledge.

Mortgage brokers know all about the wholesale interest rates that you will qualify for, and are able to add on as much commission as they want, just to make some extra money. Mortgage brokers don’t want you to know that there are certain tips to help avoid paying the full price of the interest rate that the broker gives you at first.

Here are a couple of tips that should be able to help you to avoid paying the full price of your refinance loan.

Before you look into refinancing your loan, you should first check your credit rating. Your credit rating is what lenders will look at in order to assess how risky you are.

You should request copies of your credit report from all of the credit agencies, then you should carefully study all of these documents and try to spot any errors. There are three credit reporting companies that are responsible for maintaining your credit records, because there are three different companies that manage the credit reports, it is very easy for them to develop errors.

Any errors in your credit record will negatively impact on your credit score, and so will mean that errors will cost you much more money in interest charges. By ridding yourself of errors, you should be able to get much better interest rates, and so save yourself much more money.

The best way to improve your credit score, is simply by paying all of your bills on time. If you don’t already make all the payments on time, you should start making them on time and then wait for at least six months before you apply for a new refinance loan.

Make sure you stop using your credit cards as much as possible, by maintaining as low balances as possible you should be able to prevent getting poor credit. Also avoid taking out new credit cards as these can also impact on your credit worthiness.

Your mortgage company doesn’t want you to know about the mark up that they put onto the interest rate that you could really get the loan for. You are effectively paying for the services of a mortgage broker twice, once up front, and then every month for the life of the balance.

You should compare the rate that you are offered to the rates that you have received from other mortgage brokers, or companies.

By learning how to prevent yourself having to pay the mark up, you can save yourself a lot of money.