The purpose of this article is to discuss the three tips that mortgage brokers recommend to all of their clients. The three tips include being on time with your payments, being prudent about refinancing, and not abusing your equity line of credit.
Are you considering refinancing your home for a lower interest rate, but you aren’t sure if doing so would be a smart move for you? Are you currently experiencing some financial difficulty and would like to take out a home equity line of credit to help you meet your financial obligations? If either of these situations applies to you, then you definitely need a consultation with a broker. In doing so, a broker would be able to provide you with pertinent information needed to help you make an informed decision regarding your mortgage situation. While every broker may be different, there are a few tips that they all tend to agree on with respect to advising their home owning clients on financially advantageous practices. It is the purpose of this article is to discuss what every mortgage broker wants homeowners to know.
The first tip that every mortgage broker wants homeowners to know is that you should never miss a payment. No matter how dire your financial situation may be, you should always make a concerted effort to contact your lender before you miss any payments. In doing so, it is highly likely that you will be able to work out an agreement that is advantageous for both you and the lender. On the other hand, failing to do so can severely hurt your chances of avoiding additional damage to the situation, up to and including court costs and foreclosure.
The second tip that every mortgage broker wants homeowners to know is that you should carefully assess if refinancing is right for you. Believe it or not, there are instances in which refinancing would not be financially advantageous for a homeowner. For example, if your home is almost paid for in full or if you have a substantial amount of equity built up in your home. Refinancing in both situations would not only cause you, the homeowner, to lose a significant amount of money but also prolong your indebtedness, neither of which is smart in short term or the long term.
The third tip every mortgage broker wants homeowners to know is that you should not use your home equity line of credit for personal use. In the housing market that has existed for the last few years, any homeowner would be lucky to have an equity line of credit at all. Do yourself a favor and don’t spend your money on anything but further improvement to your home, i.e. renovations, instead of paying off credit cards or expensive vacations that you can’t financially benefit from.
Whether you are a new homeowner or you have been a homeowner for quite some time, you may be doing yourself a huge disservice with some of your financial choices. However, with a few tips you can and will be able to avoid such pitfalls. Specifically, every mortgage broker wants homeowners to know three things; they include never miss a payment, carefully consider if refinancing is right for you, and don’t use your home equity line of credit for personal use.