Industry Tips
Mortgages
The Cleveland BBB routinely advises that if you are considering a mortgage, new or refinanced, investigate several lending sources first. The amount you can borrow on a particular home and the amount of interest you will be charged can vary from one lender to another, as will the upfront costs and assessments. In today's market, it is also important to understand whether you are dealing with a mortgage broker or a lending source directly.
A mortgage broker arranges loans rather than lending the money directly. The broker will be able to shop around for the best source for you. The broker is paid additional fees for this service. These fees will vary widely. Be sure to review the contract for this service and understand all costs before signing with a broker.
With any mortgage, you should recognize that the longer the repayment period, the more interest you will pay. A shorter repayment period will mean higher monthly payments. Remember to ask about early repayment, changes in interest rates and end of the loan lump sum payment.
There are many types of fixed and variable mortgages available. Understand all of the options and terms before you choose the type for you. Be sure to read and completely understand any written agreement before you sign and insist that the company put any promises in writing on the contract.
