Frugality is more a way of life than anything else. When you are frugal, you look for the most economical ways to do things. From buying groceries to shopping for car insurance, frugality is all about not spending more than necessary to get the quality you want. With that in mind, you can be frugal about your mortgage.
Note that being frugal and being cheap are not the same thing. Being cheap has the connotation of being willing to accept lower quality in exchange for a lower price. Frugality is all about getting the biggest bang for your buck. You are more concerned about value than bottom-line price.
With that said, the mortgage finance broker whose ad you just saw on your smartphone can be your best friend in your search for a frugal mortgage. Mortgage brokers bring some things to the table that bank loan officers just cannot. And if you know how to use these things to your advantage, finding a frugal mortgage is easier than it sounds.
Mortgage Broker Knowledge
A mortgage broker brings a lot of intangibles to the mortgage search, beginning with knowledge. Did you know that mortgage brokers are more than just intermediaries who connect lenders and buyers? Indeed, a certified mortgage broker is a financial adviser with specialised knowledge in mortgages and mortgage lending.
You can put that knowledge to work for your benefit. Your mortgage broker can advise you on all the little details of borrowing to buy a house. He or she can explain interest, mortgage insurance, and all the fees and costs that come with loan origination and approval. He/she can even advise you as to how all of these little details will affect your budget.
Mortgage Broker Experience
Mortgage brokers are specialists whose entire livelihoods revolve around the mortgage market. It is all they do. As such, they have a lot more experience compared to loan officers who may deal in everything from personal to auto loans. That kind of experience can be invaluable.
Your mortgage broker will know from experience what it takes to get the attention of good lenders. He/she will know what certain lenders require before they will even look at a loan application. He/she will also have experience in finding the best mortgages for both short- and long-term needs.
Mortgage Broker Accessibility
This third point is one that gets overlooked by far too many home buyers: mortgage brokers have access to considerably more options. For example, let us compare the mortgage broker down the street with a loan officer at your bank.
The loan officer is limited only to the mortgages your bank offers. If that means just one or two mortgage products – one fixed rate and the other a variable rate – so be it. That may be all you have to choose from. On the other hand, the mortgage broker doesn’t represent a single lender. If he/she is an independent broker, he/she has access to virtually every mortgage product on the market.
How you use this to your advantage should be obvious. The more access you have, the more choices there are to work with. Your mortgage broker should be able to find you a mortgage product that offers just the right balance between interest rates, fees and charges, and loan terms.
Making the Most of Your Investment
With the amount of money that you are going to spend on a house, it is reasonable to expect you to view your purchase as an investment. Yet investing in a house doesn’t have to be at odds with your frugal lifestyle. You can buy a house and still finance it with the most economically and financially viable mortgage you can find. A mortgage broker is the one to help you find it.
A mortgage broker could be your best friend in your search for a frugal mortgage. Your broker’s knowledge, experience, and market accessibility make him or her the most qualified to help you realise your home-buying dream without sacrificing your commitment to spending wisely.