A mortgage broker can save you time, but…

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You already have your mortgage. You're an old pro at getting a home loan. Right?

Perhaps you used a mortgage broker to help you find the original loan on your home, or maybe you simply found your mortgage on your own.

If you are considering refinancing your home, you may want to think about enlisting the help of a good mortgage broker. This can help save you time and money by finding the best interest rate and type of loan to refinance your home and fit your needs.

What is a mortgage broker? This is a middle man who helps borrowers find the perfect lender and home loan offering. They are paid a fee by the borrower to help them find the right loan.

Compare loans from an enormous number of lenders. Brokers have the ability to work with a large network of home mortgage lenders. They have access to unpublished rates not available to the general public.

Because brokers can compare rates through a large group of lenders, they can often find you a great deal with the right terms that meet your refinancing needs. They can search through home loans available from a wide selection of lenders ranging from traditional banks, credit unions, mortgage bankers, and other brokers.

You have a busy life to lead and may not have the time to search several banks’ offers to find the best deal. A broker searches for the best mortgages from hundreds of institutions for a living.

Vast experience in home loans. A good broker can walk you through the steps of finding the right mortgage to help you refinance your home. Each type of loan has its own criteria for lending, loan details, and interest rates based on the type of loan and length of repayment.

A broker can help you navigate all of the different loan choices that you face. Like a business, a broker has a competitive advantage of vast mortgage experience. Many homeowners only require a few loans in their lifetimes, but a broker is an industry insider working on the borrower’s behalf to find a great loan terms and interest rate for you.

Drawbacks. Brokers, however, aren't obligated to put your interests ahead of their own. In fact, the industry has fought efforts to make it a fiduciary responsibility to do so.

Our advice: If you've decided to go with a broker, shop around and ask the right questions, like, how are you going to put my interests first?

You might also consider looking at the deals offered by a few lenders first and then seeing if the broker can do any better. Our mortgage database can get you started on refinancing your loan.

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