Do You Need a Mortgage Broker?

May 17, 2009 by  
Filed under Loans and Borrowing

I have never used a mortgage broker, preferring to be more personally involved in loan investigation and due diligence. Lots of others have used them and I wonder how much that has contributed to our recent financial meltdown.

Mr. ToughMoneyLove is always on the lookout for ways to save time and money by skipping people in the middle who have their hands out but do not add a lot of value. One candidate for skipping that comes to mind is the mortgage broker. For a quick lesson on how mortgage brokers can pretend to be helpful while digging deep into your pocket as you dig a financial hole for yourself, read the entire article I linked to in this post about a very public fool of finance.  That reporter was done in by his own stupidity, including a failure to recognize how he was being used by a  mortgage broker whom he treated as an objective financial advisor.

So I was interested to discover a new online resource (in beta release) at Normally, I would not check out a site like this because we are not in the market for a mortgage nor do we plan to be. We are actually in an accelerated pay off the mortgage mode. However, when a site is talked about by a technology writer at PC Magazine, that piques my interest a bit.

This site claims to provide an objective path to an ideal mortgage suited to your situation. One unique feature of the site appears to be advice tailored to a user profile to increase that user’s financial fitness. This prepares the user to obtain the best mortgage. The user is even assigned a “grade” in regard to mortgage eligibility.

The aspect I liked best about Home-Account are these representations (assuming they are true):

  1. Home-Account has no vested interest in selling you a particular financial product. We make the same whether you get a new mortgage or not.
  2. Home-Account doesn’t accept or pay fees to any mortgage broker, banker or salesperson.
  3. At Home-Account we are 100 percent consumer advocates; we serve and empower the homeowner to make smarter decisions.
  4. Home-Account is not in the lead generation business like all of the other Internet mortgage sites.

This claim to complete objectivity separates this site from all others who provide similar information. That includes your conventional mortgage broker.

Anyway, if you or a family member are shopping for a mortgage, it’s probably worth a test drive.

Moving on, there was an interesting exchange of views this week at the Master Your Card blog about the writer’s succumbing to impulse buying for “cute” clothes and then explaining to readers that it was OK because she didn’t have any credit card debt. I didn’t think it was OK and I said so in the comments. I was jumped on by other readers who also seem to like clothes shopping as a recreational activity. You might want to have a look and share your own views.

My writing appeared this week in the Carnival of Pecuniary Delights (where my post was an editor’s pick) and the Carnival of Personal Finance. These carnivals are always worth reviewing.

Enjoy the remainder of your weekend.

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One Response to “Do You Need a Mortgage Broker?”
  1. The site was down for me (or just didn’t work on iPhone). Can you explain how the website makes money?

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