Subprime Mortgage Loans 3 Questions To Ask Your Subprime Mortgage Broker

Subprime Mortgage Loans 3 Questions To Ask Your Subprime Mortgage Broker

Subprime Mortgage Loans - 3 Questions to​ Ask Your Subprime Mortgage Broker
Subprime mortgage brokers offer a​ variety of​ mortgage loan packages from different lending companies .​
They can find financing for almost anyone,​ regardless of​ their credit score .​
Even though brokers offer a​ valuable service,​ you​ still need to​ ask questions to​ be sure you​ are getting the​ best deal.
1 .​
What is​ Your Fee?
Before you​ begin working with a​ subprime mortgage broker,​ ask how they are getting paid .​
Sometimes they charge you​ an​ upfront fee,​ other times they are paid by the​ mortgage company.
Upfront fees don’t guarantee you​ the​ best deal,​ but they do reduce the​ broker’s reliance on​ mortgage companies’ fees .​
Instead of​ looking at​ who offers them the​ best payoff,​ they are looking at​ your interest.
Fees paid by the​ mortgage company can still mean you​ find a​ good deal .​
Most brokers are able to​ negotiate lower rates for you,​ so you​ still come out ahead .​
Using this type of​ broker also allows you​ to​ work with a​ couple of​ brokers,​ making sure you​ find the​ best deal.
2 .​
What Are the​ Loans Fees?
Even when brokers present you​ with rate quotes,​ take the​ time to​ look at​ fees and points .​
The APR should include both the​ rates and fees .​
It is​ required to​ be disclosed before signing a​ contract so you​ can make a​ real comparison .​
Sometimes the​ lowest rate loan has the​ highest closing fees and isn’t the​ best deal.
The rates presented to​ you​ are somewhat flexible .​
You can reduce them by paying more points or​ increasing your down payment .​
Points only make sense if​ you​ plan on​ keep the​ loan for a​ number of​ years.
3 .​
Are There Early Payment Fees Or Other Clauses?
Also check for early payment or​ other fees .​
Subprime mortgages are often refinanced when your credit score improves .​
Check to​ see if​ you​ can pay a​ point to​ waive the​ early payment fee if​ you​ plan to​ refinance.
Some subprime lenders will automatically refinance your loan for better rates after two years .​
This can save you​ thousands on​ later refinancing costs .​
Just like any loan offer,​ check the​ rates with other packages.

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