Broadview Mortgage is a direct residential mortgage lender headquartered in Orange, CA with several office branches located throughout Southern California. Since its inception, Broadview Mortgage has maintained its reputation as a direct lender with strong pricing, products, and fast closings. We close purchase transactions under 22 calendar days on average. Now more than ever, experienced mortgage experts are one of the most important qualities to look for in a lender. The talented management team at Broadview has experience in the mortgage industry pairing the right mortgage product to a buyer’s unique financial goals. Using top investors, our mortgage consultants can offer competitive rates on a vast array of mortgage products including FHA, VA, low adjustable and fixed-rate mortgages, USDA, jumbo, and conventional mortgages.
What is the difference between a mortgage broker and a direct lender?
Broadview Mortgage is a direct lender. When you work with a direct lender, you interact with the same people from the same company throughout the entire process – from application to close – ensuring the attention to detail you deserve. A direct lender approves the loan, and can generally offer lower rates/costs and a quicker process. That’s not always the case with a mortgage broker. A mortgage broker is a middleman that brings you to the lender who approves the loan, which can sometimes result in a higher cost for you.
What is the difference between the interest rate and the A.P.R.?
You’ll see an interest rate and an Annual Percentage Rate (A.P.R.) for each mortgage loan you see advertised. The easy answer to “why” is that federal law requires the lender to tell you both.
The A.P.R. is a tool for comparing different loans, which will include different interest rates but also different points and other terms. The A.P.R. is designed to represent the “true cost of a loan” to the borrower, expressed in the form of a yearly rate. This way, lenders can’t “hide” fees and upfront costs behind low advertised rates.
While it’s designed to make it easier to compare loans, it’s sometimes confusing because the A.P.R. includes some, but not all, of the various fees and insurance premiums that accompany a mortgage. And since the federal law that requires lenders to disclose the A.P.R. does not clearly define what goes into the calculation, A.P.R.s can vary from lender to lender and loan to loan.
The A.P.R. on a loan tied to a market index, like a 5/1 ARM, assumes the market index will never change. But ARMs were invented because the market index changes and makes fixed rate loans cheaper or more expensive to make — that’s why they’re variable rate in the first placed!
So, A.P.R.s are at best inexact. The lesson is that A.P.R. can be a guide, but you need a mortgage professional to help you find the truly best loan for you.
Note when you’re browsing for loan terms that the A.P.R. will not tell you about balloon payments or prepayment penalties, or how long your rate is locked. Also, you’ll see that A.P.R.s on 15-year loans will carry a higher relative rate due to the fact that points are amortized over a shorter period of time.
When is the best time to buy a house?
I wrote about this a while ago. You can read a longer version of my opinion here.
The short answer to this question is, “it depends.”
The longer answer really depends on the individual. You can read the so called “experts” all you want, but it is all just speculation. Most “experts” and communicating to a much larger audience. They’re not considering individual factors, and most are trying to sell us something else (ie. books, seminars, videos).
My #1 Rule when it comes to buying a home is that it should make sense for you TODAY!
Don’t try to project where the market is and where it’s going. Look at your finances, do a thorough analysis, and decide if buying this home makes financial sense today. It kinda sounds like common sense, doesn’t it? But if more people would do this we wouldn’t have housing bubbles and bursts.
When is the best time to Refinance my current mortgage?
Again… when it makes sense for you.
There are an enormous number of refinancing options available to borrowers.
The following are some general things to bear in mind as you consider your options.
Reducing Your Monthly Payments
Are getting better mortgage payments and a lower rate your main reasons for refinancing? If so, the best option might be a low fixed-rate loan. Maybe you are presently in a loan with a high, fixed interest rate, or a mortgage loan with which the rate of interest varies : an adjustable rate mortgage (ARM). Even if interest rates rise, a fixed rate mortgage will stay at the same, low interest rate, unlike an ARM. This can be especially a good choice if you don’t think you’ll be selling your home within the next five years or so. But if you do expect to move more quickly, you will want to consider an ARM with a low initial rate to get reduced mortgage payments.
Getting Out some Cash
Are you hoping to cash out some of your equity in your refinance? It could be you need to update your kitchen, take care of your college kid’s tuition, or take your family on a dream vacation. With this in mind, you need to look for a loan above the remaining balance of your existing mortgage. If your interest rate is currently high and you’ve held it for a long time, you could be able to reach your goals without a rise in your mortgage payment.
Debt Consolidation
Maybe you want to pull out some of the equity in your home (cash out) to use toward other debt. If you have the equity in your home for it, paying off other debt with higher interest than the rate on your mortgage (like car loans, credit cards, student loans, or home equity loans) means you can possible save hundreds of dollars a month.
Getting a Shorter Term Loan
Are you dreaming of paying your loan off faster, while building up your equity more quickly? Consider refinancing to a short-term loan, like a 15-year mortgage. Even though your mortgage payments will usually be increased, you can save on interest; so your equity amount will build up faster. But, you might be able to switch without a higher monthly payment if your longer term mortgage loan was closed a while back, and the balance remaining is somewhat low. You may even pay less!
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