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Mortgage Quote and You

Shopping around for a mortgage? Gone are the days where you need to head out physically to different bank branches and wait in line for a mortgage quote to be printed out for you. Obtaining an online mortgage quote through the online sites of banks, institutions and brokers is now very quick and efficient. You can usually get an immediate response on a mortgage quote once you have decided what mortgage product suits you.

Online mortgage quotes can be obtained from various sources on the internet.

  • 1. Home site of bank and non-bank financial institutions (e.g. Citibank, Bank of American, GE Money sites). Once you are on the home page of the institution, you will need to look for menu links that will lead you to online mortgage quotes and current mortgage rates information
  • 2. Mortgage brokers' sites - there are hundreds of them out there on the web and they can also provide immediate online mortgage quotes from a range of different lenders. They usually have online forms on their sites for you to request mortgage quotes and information.
  • 3. Mortgage lending review sites can also have up to date forms linked to lenders that will provide online mortgage quotes
  • 4. Some mortgage information sites are not brokers but online affiliates of lenders. These sites will typically ask from you basic information and send out electronic quote requests to relevant lenders. Typically you will then receive direct quotes from lenders by email.

Besides providing you with fast mortgage quotes, these online sites usually provide a plethora of other free information and services related to mortgage lending. You will be able to access tools to calculate monthly mortgage repayments. There will be detailed information on different mortgage products including mortgage rates, asset lending ratios, valuation services and online tools to conduct preliminary approval for mortgage lending.
Most mortgage quote sites also provide insightful articles and links on mortgage lending issues as well as reviews and blogs on lending products and services. You will also be able to access up to date financial information at these sites including general financial news, current cash interest rates and mortgage regulations.

While mortgage quotes online provide a quick and easy way to compare mortgage products from different lending firms, there are a few considerations to take in when shopping around for an on-line mortgage quote.

  • 1. Be smart about your private details. You should not have to submit personal details including social security number, address, telephone and employment details to obtain an online mortgage quote. Beware of sites that ask for this as they might just be phishing for your details and not be a legitimate lender or broker.
  • 2. Realize that mortgage quotes are only preliminary and may not be up to date. Actual mortgage rates may be considerable different once you submit a formal mortgage application. Your personal circumstances like income, credit history, personal assets/liabilities and lending ratios can all influence the actual mortgage rate.
  • 3. When obtaining mortgage quotes and mortgage rates, also research the lenders' service history and track record with other consumers. A great mortgage quote does not mean the lender is suitable for your circumstance as the lender might not provide extra services and product options like redraw options, early repayment options, telephone/face to face service points etc.
  • 4. Besides obtaining mortgage quotes, you should always obtain any available contract information and terms and conditions. Mortgage quotes can sometimes be misleading if the information is not timely and if mortgage products have inbuilt 'honeymoon' periods when the mortgage rates are low before reverting to a much higher rate at a later date.
  • 5. Never proceed to mortgage application stage until you've got multiple quotes and have read all the relevant fine print and that you are satisfied on the trustworthiness of the online lender/broker.
  • 6. Never fill out multiple mortgage applications as these can go on your official lending record and count against your credit rating.
  • 7. Be wary that some online brokers and sites are not as "unbiased" and objective as they claim to be. Many will say that they obtain the best quotes from hundreds of available lenders. However, it is more likely that a broker deals exclusively only with a handful of lenders that provides the broker with the best commissions. If you are using online brokers, always get quotes from different brokers to ensure you have a good spread of quotes from different institutions.

Always take advantage of online tools including repayment calculators as well as information and review sites on mortgage products. Keep an eye out for broker and lender sites with bad reputations and stay away from them. Your local government and consumer advocate agency can often provide a list of mortgage online sites to avoid. You can never be too careful when you are researching on the web for online mortgage quotes. Keep your personal information secure and look beyond the marketing hype and at the fine print. Once you are ready to proceed to application stage, you may prefer the security of applying by telephone or by face to face meeting if your lender has a local representative office. Online mortgage quotes are very effective and time efficient. But use it wisely and always get a confirmation of the quote in writing or by email before you proceed with mortgage application.