Details on Kaleido Loans

A summary is provided at the bottom of the article body under The Final Word… for those speed demons amongst you readers. For those of you that are totally fresh on the mortgage scene, let’s cover the basics. A mortgage is when you charge property to a creditor as security for a debt. What that means in plain English is you give a portion of your property’s ownership to a bank for money. Mortgages are one of the biggest loans in banking today, making your interest rate all the more important. Mortgages typically take thirty or more years to pay off, and are a good percentage of many people’s monthly payments. Have a look at Kaleido Loans – North Strathfield home loan brokers for more info on this.

Now, what is a mortgage broker? They are someone who facilitates this exchange of property ownership for money. They can be a part of a bank, credit union, or other lender’s paid staff, or they can be independent after they gain some years of experience. For our purposes, we’re going to call private mortgage brokers just “mortgage brokers” and mortgage brokers who work for a bank or other lender “bank staff.”

So, how are mortgage brokers paid? Although there are a number of differing methods, they are mostly paid through the lender they give the loan to. Of course, that means that the service they provide to you is potentially free of charge. Some also charge the person seeking a mortgage a lump sum of a few hundred dollars or so, though every mortgage broker is free to choose their own prices and form of payment since they are an independent business. When speaking to mortgage brokers, make sure to inquire about the method of payment.

Are there downsides to using a mortgage broker? Yes. The major downside of using them as opposed to bank staff is that they themselves do not have access to the funds you’re requesting. If funding is required as an emergency, then approaching a bank or lender’s staff directly is probably the best option. Still this is not necessarily the case. Bank staff have, on average, less experience and may have a large number of clients and other work to deal with as well as a long chain of hierarchy and bureaucracy to work through. Mortgage brokers, on the other hand, prepare everything for the bank ahead of time and present it directly to a bank official, allowing them to skip certain members of the bank hierarchy and get to a simple decision.