If you are planning on seeing a mortgage broker to help you get some of the best rates on your mortgage, there are a number of questions that you can ask to make sure that they understand your finances and that they have your best interests in mind. Here are some of the top questions to ask any mortgage broker:
Information on the term: understanding more about the length of a contract, the rate type and more can help you understand how much a mortgage may cost you. A lower monthly payment may not be the best option if it means extra years on your mortgage.
Ask about restrictions: learning more about the restrictions of your mortgage and prepayments can be important. If you wanted to pay off your mortgage early, certain lenders may still make you pay a certain amount of interest anyway.
Refinancing restrictions: if you would like the option to refinance early with the lender, sometimes there can be penalties and charges that you may incur.
The penalties of the mortgage: asking about penalties with any line of credit or mortgage is essential. Certain mortgage companies may offer you debt forgiveness or relief if you were to take sick for example. Others will start to incur penalties as soon as you start missing a few payments.
Ask about your credit score: by asking about your credit score you can learn more about how to improve it.
Ask about a secondary mortgage: if you plan on setting up the home as a rental property or investing in a cottage, it could be a good idea to ask about secondary mortgages on top of this one.
Is the mortgage insured? If your mortgage is insured it may be difficult to switch to a new lender.
Are there penalties for extending the amortization? Certain lenders will actually charge extra interest if you choose to spread out your mortgage over 25 years.
Keep some of these top questions in mind when you are asking your mortgage broker about the rates and the mortgages that they present to you.