If you have a mortgage, chances are your first instinct as to go to your bank and get it from them. That is a fair and safe choice, however, it's good to know what else is out there. In many cases you can get the same or better rates from monoline lenders, and with other benefits such as:
- Competitive rates
- Low pre-payment penalties
- Great customer service
- Easier guidelines for self-employed or low-credit scores
- Flexible pre-payment options
The best thing to do is to talk to your mortgage broker well in advance. There are a lot of options out there right now, so explore which option is best for you.
These are the main questions to ask your mortgage broker:
- What is the pre-payment penalty?
- What are my pre-payment privileges?
- What are my choices for payment frequencies?
- Can I make a lump sum payment?
- What is the max amortization?