Financial freedom is a dream for many but a reality for very few of us. Mortgages contribute to the financial struggle for many due to the constant commitment that can’t be broken without serious consequences. As with all areas of finance, the more you know the better decisions you can make to get that one step closer to ‘freedom’.
The lending market can seem such a complicated assortment of abbreviations , percentage signs and numbers that you can get lost in the confusion in no time. You’re not alone. To help you end up with the mortgage that suits you best, you need to start the process with a clear set of goals, limits and timescales in mind. Write them down so you don’t lose sight and stick to them! Of course, an industry expert such as a Florida mortgage broker may be able to advise you about options that are suitable to you that fall outside of your initial parameters; it’s good to explore but only proceed if the payment and length terms are less than your original plan.
If you already have a mortgage in place then a remortgage may be an option to reduce the stress on your finances from a previous loan decision. Lots of companies will offer you remortgage plans but they will, inevitably, mean you will end up paying more. However, giving yourself some breathing space right now may be worth the extra long term cost of the mortgage. A good tip for this process is to make sure you are fully aware of the payment options, for example, can you increase your monthly repayments if your circumstances permit it in the future? This is important and can be very valuable because it means that if your personal finances allow it, you can pay the loan off quicker and incur less interest rate charges. As with all financial decisions you need to work out your best and worst cases; can you deal with the worst case? If the answer is no then that ‘option’ is not an option!
Using a broker is a must. We touched upon the value they can add to a search but deciding which one to use is just as important as deciding to use one in the first place! A good place to start is an ‘all-market’ broker who has the freedom to look at, as the name suggests, the whole market. This may sound obvious but it is crucial because any loan brokers attached to a bank are tied in to selling certain mortgage products so you don’t get to accurately explore the whole array (refer back to our earlier point about the more you know, the better)! Also, a broker can take all of your requirements and match them accurately to a loan that suits you without you battling through the jargon.
Mortgages are a probably the biggest financial commitment you are likely to make and in our current economic climate , the decision has never been as important. The tools and people to advise you are readily available so make the most of them. There will be an option for a new loan or to refinance a current mortgage so go and ask the question that could be platform from which you can attain financial freedom!