mortgage broker. NOUN.
An individual or company which brings borrowers and lenders together for the purpose of loan origination, but which does not originate or service the mortgages. The broker might also negotiate with the lender to try and find the best possible financing deal possible for the borrower.
Mortgage brokers are experts in the field of mortgage loans. Mortgage brokers work with home buyers to find the right mortgage loan much in the same way as real estate brokers help you find the right house.
The primary service offered by mortgage brokers is expert knowledge, not only of mortgage rates and terms, but also of the various mortgage loans offered by specific banks and lending institutions. Therefore, mortgage brokers can save you time and money by identifying lenders and mortgage products that match your particular situation and preferences, something that loan officers from banks can't do. Because mortgage brokers have the ability to search for the best rate/scenario options possible, and can work with multiple lenders at the same time, they are the better avenue for helping you in the financing of your home.
Will I save money going directly to a bank instead of a broker?
Not necessarily. In fact, if you are a reasonably astute shopper, you will probably do better dealing with a mortgage broker. Mortgage brokers do not add any net cost to the lending process, because they perform functions that would otherwise have to be done by employees of the lender. Furthermore, because mortgage brokers deal with multiple lenders -- in a typical case, 25 to 30, sometimes more -- they can shop for the best terms available on any given day. In addition, they can find the lenders who specialize in various market niches that many other lenders avoid, such as loans to applicants with poor credit ratings, loans to borrowers who do not intend to occupy the property, loans with minimal or no down payment, and so on.
Financial Peace of Mind
It's that dreaded time of the year again, time to start
preparing your tax returns. And since 2008 was one of the
toughest years in the history of our financial markets, this
also may be a time that many of us learn exactly how much
of a hit our investments and retirement accounts actually
took this year.
With this in mind, the most practical financial advice we can
offer right now is to consider a Certified Public Accountant.
An experienced CPA not only helps you navigate complex
tax codes to save you money and possibly additional
financial losses, he or she can also offer a new perspective
on your financial goals and needs, providing a peace of
mind that we can all really use right now, especially if you're
one of many Americans who suffered significant losses in
2008.
Remember, your accountant should be an extension of your
overall financial plan, someone trustworthy who you can
count on throughout the whole year to provide information
and advice you need to succeed. If you need help finding
someone you can trust, we'll be glad to refer you to one of
the great CPAs we work with on a daily basis to help our
clients reach their financial goals. Please, don't hesitate to
give us a call.
Let's Make a Deal
Marketing studies show that it costs companies nearly five
times as much to get new customers than it does to keep
the ones they already have. During tough times, companies
have to fight even harder to attract and, more importantly, to
keep your business. This means you suddenly have more
power to negotiate for the best deals on everything from
cable to credit cards and insurance premiums to telephone
service and internet providers.
Pull out your checkbook and review all of the services you currently use and how much you pay. Make a list of essential services and those you
might be able to live without. Do a little research and see if you could be saving with different companies or by bundling services together. Then get on the phone and start negotiating. With competitors anxious to take your business, you may be able to save yourself a lot of money simply by asking your providers for a better deal, especially if you've
been a loyal customer. The best part is by saving a little money on the essential services that you need, you may not have to cancel the others that you like.
Government Bail-out for Home Owners
Before you file your taxes this year, don't forget about the
$7500 tax credit for first-time home buyers, which was
enacted by the 2008 American Housing Rescue and
Foreclosure Act. Designed to help stimulate interest in the
housing market, this temporary provision provides a
first-time home buyer (someone who hasn't owned a home
in the last three years) a tax credit of up to $7500 for homes
purchased between April 8, 2008 and July 1, 2009.
Basically the tax credit, which must be repaid over 15 years,
is an interest-free loan from the government to help you
offset the costs of home ownership.
But here's the best part. The law allows qualified taxpayers
to take the credit against either their 2008 or 2009 taxes.
This means, if you qualify, you can buy a house this year
before July 1st and receive the credit on the 2008 tax
returns you're filling out right now. Imagine having an extra
$7500 in cash to pay bills or credit cards or even pay for
renovations on your new home. If you choose to utilize the
credit on your 2009 returns, your tax professional can help
you reduce income tax withholding up to the amount of the
credit. This will help you to increase your take-home pay
throughout the year to save money for a down payment for
a qualified purchase before July 1st. There are certain income restrictions and rules for repayment, but give us call today to learn more about this valuable government program for first-time home buyers.
New and Improved Phishing Scams
By now, most of us are likely familiar with and are able to detect “phishing scams,” phony emails sent from fraudulent websites to lure our personal information away from us. But, according to internet security experts at Trusteer, there is a new advanced phishing scheme in the works that doesn’t rely on email. The new scam tricks users into giving away confidential information while online at secure banking websites.
How does it work? This new "in-session phishing" attack creates pop-ups while you're signed in with your real online bank. The pop-up, with your bank’s recognizable logo, asks for details, such as passwords and account numbers. For example, one pop-up warns that your session has expired and asks you to log in again. Another asks for additional personal information.
Don’t let this happen to you. While banking online, don’t have any other web sites open. Be sure to log out completely before leaving, and do not respond to or click on any pop-ups.
