Tag Archive: Mortgage Loan

Relying On a Mortgage Calculator Can Be Risky

Mortgage Calculator

Mortgage calculators are a great way to take into account your borrowing capacity in a couple of simple clicks. Add the amount you want to borrow into the calculator, followed by the length of the mortgage term, plus the interest rate incurred gives you a ball park figure of how much you will have to repay to the lender each month.

But can you rely fully on the mortgage calculator for accurate results? It’s a difficult question, because even though you have chosen your dream property and now you know how much you can afford for your mortgage each month – it should be a walk in the park, yes?

Unfortunately, relying on a mortgage calculator alone isn’t a great idea, the fields are limited plus your lender takes other factors into account. For example, it is unlikely any lender will offer you a mortgage if your credit history is less than perfect. If you have defaulted on payments in the past but managed to pay the debts off and haven’t had any problems since, you may scrape through. You have to be able to prove you are a reliable and trustworthy candidate for them to even consider lending you the funds. The use of a mortgage calculator however accurate, and credit worthy you are today, will not automatically guarantee your loan approval.

Another downside of relying on the mortgage calculator alone is its inability to take into account varying rates over the loan term. For example, you may be offered a 3 year fixed APR at 3.8% but after that it reverts to a variable rate. If at the end of your fixed term, the variable rate is sitting at around 4.5% it can hike a large increase onto your monthly repayments.

This should always be considered. Using a qualified mortgage broker will help you determine what you can afford and also calculate with you how the amounts will alter over time, taking into account your circumstances and loan offer. They will also assist you in completing the paperwork, one small slip in annual earnings, omitting a zero in error will have your entire dreams crashing down around you. Double check all of your paperwork prior to submission and ensure the information you are giving to the lender is 100% accurate.

Mortgage CalculatorMortgage brokers are also beneficial for other reasons, if they have been working in the industry for a while you will find they have good relationships with specific banks and lenders. If this is the case they will perhaps have a loan agreement for a limited period which is unique to them, meaning you won’t achieve the same terms elsewhere. They also become aware of how the lenders credit score your application. Each lender has a specific algorithm which profiles their ideal customer, some are more lenient than others and will offer a mortgage to you if you have a less than perfect credit history. Your mortgage broker will know this and can assist you, taking away any stress of searching for weeks just to be turned down after going through the entire paperwork process.

So, yes, using a mortgage calculator is fine, if used to give you an indication of what you could possibly borrow and the repayments, but remember there are many more factors to consider before you sign on the dotted line. Mortgage brokers Melbourne have been assisting with the customer lending process for years, contact them via www.mortgagebroker247.com.au and they will be able to talk you through everything you need to know.

Be Wary of Mortgage Loan Modifiers Dressed in Sheep’s Clothing

Mortgage Loan

At some time in your life you have probably been approached via direct marketing or a telesales call by someone promising you they can reduce your mortgage payments each month. They promise you the earth – they will modify it, have it reduced, rectify any poor credit history so that you can apply for a mortgage again. But there is a catch – they want to be paid upfront for it. So ask yourself – if you didn’t approach them for the service in the first place they obviously want something from you, and it usually means financial benefits to them.

The mortgage loan modifiers operate in the guise of plausible, honest to goodness mortgage brokers who can save you lots of money so you can take your children on vacation. If you are approached by someone making these offers, the first thing to do is take all of their details – everything. Name, business address, ask them to show you any certificates of accreditation. If they call you ask them to email them to you, don’t use a usual email account – set up another purely for marketing, that way you won’t clog your inbox. If they are a genuine business you will find them online with a good reputation, reviews and testimonials, a legitimate business address and company registration number. You will be able to search the directors of the company, and feel free to give them a call back to double check they are who they say they are.

If someone asks you for money upfront to get your loan modified or reduced, tell them to contact your lender – they should know who your lender is already if they are contacting you. If they don’t know who your lender is, how are they so confident they can reduce your loan? You may have the lowest rate and best terms on the market! If the mortgage loan modifiers say they will contact your lender and negotiate new terms, ask for a written proposal and don’t agree to anything not even in principle until you have the paperwork and have treble checked everything. Oh, and still don’t hand any money over upfront.

Mortgage LoanIn addition to the mortgage loan modifiers you also have the “forensic loan auditor”. They want to charge you to look over your existing paperwork, just to check everything is in order. They are also trying to scam you, I’m afraid. If you are unsure contact your mortgage broker or your lender and ask them any questions about your loan terms and agreement.

There are always legitimate companies and mortgage brokers who can work with you to modify your loan if you seek to do so, regulated companies like www.mortgagebroker247.com.au are always on hand to help with any queries.

If someone contacts you out of the blue, remember they probably want something, usually money.

• Don’t pay any fees upfront to any company
• Always check the company and individual’s references
• Be very careful who you let access your personal data
• Contact your lender or mortgage broker
If you follow these simple steps you will avoid being out of pocket and could prevent other people from being scammed too.