Economic Worries and Mortgages

One of the most confusing times for everyone in the financial industry is when the economy is seen as fragile. The deficits in the U.S, Britain, Western Europe, and even Canada make investors very nervous. Today, following the economic debate between the U.S political parties on how to manage debt has caused the bond market prices to drop.

Mortgages come from investors wishing to place their money in these markets. If there is concern over the risk, this can or could affect how much money is available. We certainly have seen rates affected, pushing them lower. So we have a conflict; competition for money and rate. This, of course, is a good news bad news scenario. There may be fewer home buyers but rates are lower. Desperate mortgage brokers and agents may try to increase business by lowering rates. This creates frustration throughout the industry when people feel their broker agent is not getting the lowest rates. The problem is that the slightly higher rate can come from the best and most secure lenders who provide great product flexibility.

Rate is not always the solution. When a broker agent buys your rate down, sooner or later they may feel cheated and provide you with poorer service. Beware of low rates for low rate sake.

Technology: Not Always So Friendly in the Mortgage Biz

The longer I remain in the mortgage business, the more variety I see in the client’s coming forward.  The trend seems to be that older people use the banks because they are accustomed to their services.  Also, the older person typically thinks they know better.  Well, I am in that “older person” group, and when I first got into the mortgage business I soon found out that the bank was not meeting my needs.  I also realized how little I knew.  I wasn’t informed enough and did not realize how poorly my needs were being attended to until I began to learn the mortgage process myself, and the variety of options available to people.

Now, after many years of experience, I seem to see more young people in my office.  They arrive feeling they don’t know much about getting their first home and want lots of help; these are clients wise beyond their years.  This can be a tricky business wherein the explanation and presentation to a lender are essential.

One important note I want to express to these youthful clients’ is that the world of technology is not always so friendly.  Lenders and even mortgage brokers are actively involved in “apps” and using their websites to apply online for mortgages.  Not knowing the “rules of the game” can hurt.  I have even seen a client go against my advice, opting for a different lender.  The misinformed person then chose s product, not realizing they lost the freedom to pay down their mortgage and increase their payment – an extreme disadvantage.

I believe getting what you want and deserve needs expertise.  Contact a broker agent like me to best advise you of all your potential options.  My services are free to all clients: I represent you, not the bank.