As home values in Arizona continue to decline and mortgage rates increase, many homeowners are finding it difficult to refinance their current mortgage(s). Countless homeowners currently have adjustable rate mortgages which threaten to put the homeowner in a foreclosure situation when they come due because of the increased monthly mortgage payments. As the rate consistently increases many homeowners find themselves unable to afford the new payment and risk losing their home
So what's an Arizona home owner to do?.
Some local Arizona Mortgage Brokers have started allowing borrowers to participate in the process to lower their costs. These new programs allow the borrower to participate a little more in the transaction in exchange for a super deal. The programs are similar to that of a regular loan, except that most all of the work and communication is done via email or through secure online technologies, and the customer is given additional phone support if required.
The program allows Arizona homeowners a chance to refinance and pay minimal broker fees. Some of the Arizona brokers we spoke with had a model that charged a 5 Broker fee and a 5 Processing fee per file. Although there are other fees associated with this program for third party services (i.e. an appraisal, credit costs, and discounted title/escrow) as well as lender fees, typically the broker limits its commissions in exchange for the extra work the borrower has done.
But is this the best route for all borrowers? "The
Az first time home buyer
may want the services of a full service broker to assist them with their needs" says one broker we interviewed. "While everyone is looking to cut their costs, some of the less experienced home buyers may need some hand holding through the mortgage process. And while these kind of programs are great for families in need of every last dollar, if you aren't sure what you're doing you could cost yourself a lot more money than you think by not getting the help you need."
Share this: