Featured – Mortgage Brokers in Worcester

Posted on February 2, 2011, 5:36 pm, by admin and received Comments Off.

The task of qualifying for a mortgage is something that is NOT taught in school. And these days it has become significantly more challenging given the financial meltdown which are all too familiar with. Whether you have been through this process or not it is helpful to revisit how it all happens.

Most people think of the “bank giving us a mortgage”. However, in fact it is the homeowner who grants a lending institution a mortgage on their property. The bank lend us money on a note and that note is secured by the mortgage which simply means that you grant the bank the right to take your home if you default. The process for a loan requires an assessment of risk. The bank don’t want to lend money to bad risks so they want to see if you have decent credit, pay your bills on time and as a result they have a good chance of getting their money back. It is a process that has become more complicated over time and although the market has lost some of the more exotic products that caused so much trouble there is still a requirement to provide fairly significant amounts of documentation/proof. The process has twists turns and quite a few pitfalls. Pretty much everyone can tell you horror stories about applying to banks for mortgage loans.

Mortgage brokers in Worcester simplify this process and work for you and not the bank. Brokers negotiate with all the lenders to get you the best interest rate possible. Mortgage brokers in Worcester do not charge fees you for their services as they are paid by the lender that you get the loan from.

Why Use a Mortgage Broker in Worcester?

A local Mortgage Broker in Worcester has intimate knowledge of the current interest rates, the local economy, fluctuating market conditions and can offer access to 30 or more lenders. No matter what your situation is, they can pretty much match you up with a lender that understands your position and can tailor the best plan for your financial future. Despite the market being depressed, the competition for financing is fierce, so a local mortgage broker in Worcester can help you get the best interest rate possible. After all, a mortgage is one of the biggest investments most of us make and any advantage you can get will help significantly in the long run as saving the slightest percentage at the outset can save tens of thousands over the term of your mortgage.

How Can a Mortgage Broker in Worcester Help?

You’re in good hands as all mortgage brokers in Worcester need to be licensed by the state and have to meet continuing education guidelines which assures the highest standard of experience.
One of the most stressful, frustrating and time consuming activities can be trying to negotiate with financial institutions one on one. A mortgage broker in Worcester can make this an easy, stress free transaction as they essentially shop the mortgage for you to lock in the best rates. Basically it reverses the typical way of qualifying for financing. Instead of you going to each lender and qualifying for each one, your mortgage broker in Worcester takes your financial details one time and lenders will bid for your business. In addition to new mortgages your mortgage broker can assist with refinances, renewals or purchase plus improvements for both residential and commercial properties.

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Benefits of using a mortgage broker in Worcester

A mortgage broker in Worcester should not be compared to a local bank, credit union or any other financial institution. Mortgage brokers are independent and have no loyalties to any given lender. Although they are licensed/trained in mortgage financing they work for YOU and not the lender. A mortgage broker in Worcester gets paid a fee by the lender once a deal has been finalized – there is no fee for the consumer.
If you have less than perfect credit (and who doesn’t these days) a mortgage broker can be very helpful in securing financing that otherwise you may not have access to. Traditional banks, especially these days are very careful about lending money to people with tarnished credit or those who are self employed. So, by selecting a mortgage broker in Worcester you are getting access to the best lending opportunities available, at no cost and without the hassle – what a deal!

Three brokers who seem good…no affiliation…please though … you MUST do your own due diligence.

GIA Mortgage Corp   www.giamortgage.com  90 Shrewsbury St # 1, Worcester  (888) 792-0360
Drew Mortgage Associates Inc www.drewmortgage.com/ 71 Pleasant Street, Worcester (508) 756-4909
Mortgage Financial, Inc  www.paulwalsh.biz/ 255 Park Avenue, Suite 1000, Worcester  (508) 595-0115




Mortgage Brokers In Worcester – Real Estate Forecast

Existing-Home Sales Resume Uptrend with Stable Prices

Existing-home sales got back on an upward path in November 2010, resuming a growth trend since bottoming in July, according to the National Association of REALTORS®.

Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, rose 5.6 percent to a seasonally adjusted annual rate of 4.68 million in November from 4.43 million in October, but are 27.9 percent below the cyclical peak of 6.49 million in November 2009, which was the initial deadline for the first-time buyer tax credit.

Lawrence Yun, NAR chief economist, is hopeful for 2011. “Continuing gains in home sales are encouraging, and the positive impact of steady job creation will more than trump some negative impact from a modest rise in mortgage interest rates, which remain historically favorable,” he said.

Courtesy of www.RealtyTimes.com

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Mortgage Brokers in Worcester recommends: Don’t rush to pay off that mortgage

Posted on May 13, 2011, 8:59 pm, by admin and received No Comments ».

Mortgage brokers in Worcester (or anywhere for that matter) know that paying off your mortgage sounds good but may not be the right thing…at least for right now. You need to look at the numbers.

When your money is earning you very low interest rates, paying off debt is likely the biggest “return” meaning that if your Visa debt is costing you 15% … every dollar you pay off gives you a 15% “return”. Not too shabby when you compare 15% to CDs around 2%, Treasury yields at almost zero, hard hit 401ks and a very weak housing market.

However many of us feel we should be bringing down our mortgages too…but hold on. Unless you are close to retirement or need to boost your debt to equity ratio (for a better rate) it’s very likely that you should leave the mortgage alone because mortgages tend to be low-interest rate debt that’s also tax-deductible. A positive double whammy. And if you’ve got negative equity (owe more than the house is worth) definitely do not pay it down.

As a generalization I think most of us would like to own our home free and clear.. Not too many of us like debt. And its tempting because making extra payments can make a big dent e.g. on a 30-year, $250k mortgage at 6% if you pay an additional $100 a month, you save almost $52k in payments and get out of the loan 4½ years early. Kick that up to $500 a month and you “save” $144,000 and 14 years! Big numbers. In fact research the Fed and researchers conducted showed that almost 20% of home owners pay extra every year.

Thing is if you dig into the numbers you’ll see that the savings aren’t as good as they seem.
Mortgages are cheap money and the interest is often deductible which means that if you are in the 25% tax band, your 6% interest rate is really only costing 4.5%. (clearly you need to chat with a pro here as your break depends on the interest paid and itemized deductions.). But even at zero tax break the cost is LOW vs. other ways we borrow. And don’t forget the mortgage savings are spread out over future years, which will be eaten into by inflation. And inflation has a big impact…the value of $1 in 20 years is likely to be worth maybe 50-60 cents in today’s money (even at a meager 3% rate of inflation.)

A Better Tactic?
Make bigger contributions to a workplace 401k: Employers will often match or give a % if you put in certain % yourself. At the very least make sure you are getting the maximum company match. This is an immediate 50% return. I repeat 50%!
The contributions themselves are often tax free so you save there and yes you owe when you retire but you’ll likely drop into a lower bracket.

Historically the market long term has consistently shown growth. Putting yourself in 60-65% stocks has been shown to earn > 8% a year over 20- to 30-year periods. It may not feel like it now but gains will return.

So by paying off a mortgage and not contributing you tend to lose all the juicy compound interest the market gives you. Yes you may make money on the valuation of the property but property does NOT have such a strong track record of consistent growth. Its estimated that homeowners would get back 10 to 16 cents more on the dollar by putting money into a 401k vs mortgage payoffs.
Roth IRAs, are another thing you should look at…no tax break upfront, but when you retire the $ is tax-free.

What if you are maxxed out on your 401ks? Well think first about paying off the debt that is costing you more than 6% …look at the plastic…Visa, Mastercard, Discover perhaps?

Now more than ever it is a good time to get a mortgage or refinance. This site Mortgage brokers in Worcester was set up to help guide people on topics like this.

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Selecting a Mortgage Broker in Worcester

Posted on February 28, 2011, 12:08 am, by admin and received No Comments ».

Selecting A Broker

It’s good to have a broker who’s nice, but it’s better to have an ethical and competent broker who will get the type of loan you need with rates and costs that are competitive.



The worst way to choose a broker would be to choose one at random from the yellow pages, from a newspaper ad, or from an add on Web or in your e-mail. It is relatively easy for anyone to obtain a mortgage broker license in all but the most highly regulated states. Mortgage brokers are cranked out at high rates in this country, maybe not as fast as real estate agents or lawyers, but the numbers are increasing rapidly. Additionally, most seasoned professionals are not likely to get caught up in the “mine is bigger than yours” yellow pages ad contest. The pro makes their money by who and what they know and by referral from satisfied customers, not by an ostentatious show.

The best way to select a mortgage broker is the same as the best way to select a dentist, lawyer, veterinarian, or real estate agent; by having personal knowledge of the individuals and of their abilities and experience. The next best way is to get a referral from a trusted acquaintance who has the personal knowledge. A significant percent of the people are getting their loans through a broker today. That means that a lot of your acquaintances have worked with a broker.
If the above isn’t feasible, for example because you are new to the area, (or don’t want to ask your friends or family) the alternative is to do some research on your own.
Determine who is brokering a lot of loans in your area. There are a number of ways to do this including: reading advertising and newspaper articles and talking with real estate agents, lawyers and CPAs. Select two or three apparently successful individuals or firms in the area. Interview the head man at each firm, as well as associates to whom you might be assigned, and make your selection of the candidates based on the interviews and the agreement that they want you to sign, if any.


If the broker requires an employment agreement, you should be sure that you understand the commitment that you are making. It is probably reasonable that you agree to utilize only that particular broker. After all, it wouldn’t be fair if the broker spends many hours on your behalf and you then get your loan through another broker. However, the commitment should have a reasonable time frame, maybe 30 or 60 days, and should not obligate you to paying a fee unless you close the loan. It is only fair, however, that you would be obligated to paying his fee if you get the same loan from another broker that he has presented to you.

If you feel particularly brave and consider mortgage brokers on the Web, you need to consider other matters. A Web site business is seen everywhere. The site of a broker in a state that is completely unregulated can be seen in states that highly regulate mortgage brokers. Do not use a broker who does not meet the licensing laws and other regulations of the state in which your property is located. If the broker does not have a physical location in the area of your property, it is even more important to check him out.

No matter how you find broker candidates , you should check with the licensing agency in your state if it is a state that regulates mortgage brokers. Are the company and its associates properly licensed? Have any complaints been filed against either? Has the mortgage brokerage firms or individual brokers that you are considering ever faced state regulatory sanctions in the past. Most states maintain some kind of list of individuals and companies who have been fined or had their licenses revoked. Check them out via a phone call to the state’s mortgage broker license regulatory agency or on the agency’s Web site . Even if it’s a state that does not regulate mortgage brokers per se, try to check them out with the BBB and by other means.

Taken from a very informative article on a good real estate investors website