11 mortgage mistakes that most people make

DEC 13, 2017 AT 01:48 AM

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4. You trust your broker too much

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Mortgage brokers aren’t your best friends. The first thing you need to do is to personally check major offers for mortgage in local banks. It’s possible that you won’t require a separate broker to access such mortgage which can save you about 1-2% of the loan amount.

Usually, brokers tend to recommend to their clients those mortgages which pay the highest reward percentages. So, these guys won’t put your budget into consideration. Moreover, banks will make their interest rates a little bit higher because they need to pay the broker monthly or yearly. Therefore, it is a great idea to deal with banks directly with no middlemen at all.

 

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Do you have spare 150 000 $ in your pocket? This is the amount of money one can easily overpay after taking the wrong kind of loan. Mortgage has both its good and bad sides. It allows us to acquire and live in our own house and stop paying rent every month.

5. You continue paying the same interest rates

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Financial experts recommend revising mortgage conditions every 2 years or a bit more often. Normally, it costs nothing to change the conditions of the deal, turn to another bank, or ask for a reduction of interest rates. You should look at the average prices for such mortgages on the market and insist on making things fair with your broker or bank.

For this reason, make sure that the exiting conditions in your contract are OK. If you have to pay a fine for early payouts or a bank change, it means that you aren’t having the best of conditions. Spend time and review propositions on the mortgage market as that can save you thousands.

 

ADVERTISEMENT

Do you have spare 150 000 $ in your pocket? This is the amount of money one can easily overpay after taking the wrong kind of loan. Mortgage has both its good and bad sides. It allows us to acquire and live in our own house and stop paying rent every month.