Mortgages in Mexico
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The vast majority of cross-border buyers who end up purchasing a home in Mexico opt to use cash. This is typically because there aren’t that many financing options for this type of purchase, and the options that exist are not usually as favorable as financing a first home purchase in your own country.
But if you can’t or don’t want to pay entirely in cash for a home in Mexico, here are some financing options that may be available to you.
FAQ
Historically, it’s been difficult for non-Mexican citizens to obtain a mortgage in Mexico. Dream Loan, by Intercam Bank is making it easier than ever for US and Canadian citizens to buy their dream home in paradise.
You can obtain a Dream Loan in some of Mexico’s most desirable locations including Puerto Vallarta, Cabo and now Riviera Maya (Cancun and Playa del Carmen).
There is a $250K minimum home-purchase price on these loans but interest rates are competitive for Mexico at 7-9%.
Absolutely. Before you ever start considering your mortgage options, it’s best to get some professional assistance on your side. Whether you’re looking to buy your home outright or obtain a mortgage, a good lawyer, preferably from an established local firm, eases the transaction process and protects you, the buyer. Besides handling your paperwork, providing tax advice, and communicating with the proper government agencies, lawyers make sure your transaction is legitimate. They’ll research the chain of ownership and perform a complete title search. With their help, you can be sure your seller is authorized to go forward with the transaction.
They’ll also help you identify and handle any stipulations regarding your property that could complicate the purchasing process. For instance, most foreign buyers in Mexico are familiar with the restricted zone–the land within 100 km of Mexico’s borders and 50 km of the coastline. To control property in these areas, you’ll need to purchase land through a Mexican trust, or fideicomiso. You’ll have the same rights and responsibilities as normal property owners, but it’s another hoop to jump through, and one more reason that it pays to have a lawyer on your side.
It’s important to note that your lawyer does not fill the same role as the notary public, or notario. Notarios are lawyers with extensive experience who administer and finalize real estate transactions as representatives of the Mexican government. They complete the property registration and oversee the final transaction, but are only there to facilitate and validate the purchase, not to look out for your best interests.
Most of Mexico’s real estate deals consist of outright cash payments. This is, frankly, the easiest way to do business. Getting one’s hands on that much cash, however, often requires some creativity when it comes to refinancing and managing one’s mortgages. Mortgage rates in Mexico are often higher than in then US, as well.
If you’re a buyer with considerable equity in your US home, you can use it to efficiently free up the cash to cover that vacation home you’ve had your eye on in Baja. One of these options is cash-out refinancing. Basically, you refinance your home for more than what is left on your original mortgage. The difference in those figures becomes a lump sum of cash that you’re free to put toward another property. Depending on how much equity you have in your home, it could be a way to free up plenty of money to cover a vacation condo. You might even be able to refinance at a lower rate than you had before.
Home equity loans and home equity lines of credit are two other popular options for people looking to gain financial flexibility through their current home’s equity. In both of these situations, people borrow money against the equity they have in their house–using that equity as collateral. This is usually expedient and convenient, but can be hazardous if your income is unstable. Buyers employing this strategy need to exercise discretion and have a stable source of income that allows them to make multiple mortgage payments depending on their equity.
For a home equity loan, you receive a lump sum up front, then pay back the loan monthly at a fixed rate. It’s a great way to gain a large sum of cash quickly. A home equity line of credit uses your current equity to secure a line of credit from your bank. Basically, you’re pre-approved for a maximum amount of credit–usually around 75%-85% of your home value minus your outstanding mortgage payments. Then you can borrow up to that limit and pay it back with interest. This borrowing period usually lasts for ten years and can allow buyers to gain large sums of cash while also leaving them free to take out smaller loans as expenses arise. This is a great way for those anticipating retirement to use the equity in their current home to help them buy their future home. Remember that a lower cost of living in Mexico, overall should help with your overall transition, if you’re moving from a a country like the US or Canada.
If you’re a Mexican citizen working with a local real estate agent, have found a lawyer, and have made an offer on a home– it’s time to start the process of securing home financing in Mexico.
Down Payments in Mexico
Larger down payments tend to be the norm in Mexico compared to their northern neighbors. It’s not unusual for buyers to finance only 50% of their home’s value. This is partly due to the lower relative real estate prices–the same amount of money you would normally put down covers a higher percentage of the sale price. Despite this trend, large down payments are not always necessary. Banks usually grant loans with potential loan-to-value rates of 50-70%—meaning that they cover between 50-70% of a home’s value and some finance as much as 90% in certain economic conditions.
Secure ESCROW Funds
You’ll be asked to put 10% of the purchase price into an escrow account managed by a third party. This deposit is usually refundable until all due diligence items have been satisfied. You can also use these funds as part of your down payment, once the loan is approved.
Gather Documentation
Again, to apply for a loan from a Mexican bank you generally must be a resident of Mexico. Either a monthly electric bill or water bill will confirm that you are indeed a resident of the country and provide proof of address. Then you’ll need your passport, birth certificate, and residency card–usually FM2(resident) or FM3(visitor). Pay stubs and bank statements from your last three to six months in Mexico, combined with a credit report conducted by the lender help banks assess a potential borrower’s ability and inclination to pay off a loan in a responsible fashion. Apart from these items, you’ll likely also need:
- An up-to-date RFC tax number (your unique tax code–essentially your Mexican social security number)*
- A CURP (the unique population registration code issued to all citizens and residents)
- A credit report from a U.S.-based credit bureau.
- An up-to-date medical certificate confirming your good health
Compared to financial institutions in the US, banks in Mexico are diligent when it comes to investigating their potential borrowers. Foreclosing on a property is a much more difficult and extensive process in Mexico than most other countries, so lenders are especially motivated to find dependable clients. Besides perusing the aforementioned documents, banks will conduct a socio-economic study of potential borrowers (at the potential client’s expense) before they ultimately grant the loan.
Closing Costs in Mexico
Mortgage or not, there are several other fees and costs associated with real estate transactions in Mexico to be aware of when you’re budgeting for your new Mexican home. See our guide to closing costs in Mexico for more detail.
Whether you’re looking to invest, hook that vacation hideaway, or make a permanent move, there are a multitude of ways to finance your home in Mexico. Finding the right one for you depends on your situation and the kind of property you’re looking to buy. Whatever type of home you seek, though, there are plenty of mortgage pathways that lead to the doorstep of your casa de Mexico.
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Compare Your Personalized Financing Options
Finance your existing home
If you already own a home in the US or Canada, don’t want to sell it, and have equity in it, then a HELOC (home equity line of credit), a home equity loan or a cash-out refinance could be a good option.
All of these options essentially let you get a loan against the equity you currently have in your home. The interest rate on these loans may be lower than financing options available in Mexico, which tend to have both higher interest rates and substantial upfront fees.
Here are more details on each option and why it may or may not be a good fit for your needs.
Financing Type | Example lenders in the US | Example lenders in Canada |
|---|---|---|
HELOCs | ||
Home equity loans | ||
Cash-out refinance |
All other things equal, if you’re not sure how to decide amongst these three options, a quick rule of thumb is:
- A HELOC is better for those who aren’t sure how much money they need, or will need to pull out different amounts of money over time. Buyers purchasing pre-construction property may be good candidates, since they will be paying for their property in installments as construction progresses. Typically HELOCs have variable interest rates that change over time.
- A home equity loan is better for those who know exactly how much they want to borrow upfront and want the peace of mind of a fixed interest rate with the same monthly payment over the lifetime of the loan.
- A cash-out refinance is a good option if current interest rates are lower than the interest rate on your existing mortgage. Though that’s unlikely to be the case if you got your mortgage in the last 12 years, given how high rates are today.
A HELOC is a home equity line of credit that borrows against the equity you have in the home (the total value of the home minus the amount you own on your primary mortgage, if you have one). By getting a HELOC, you’re essentially getting another loan on your home. HELOCs allow you to draw from a line of credit up to your limit over a draw period, usually 10 years, and then pay that back over a period of time called the repayment period. HELOCs usually have variable interest rates that fluctuate based on the overall market.
Who qualifies for a HELOC?- Homeowners who have enough equity in their home. In the US, you must have at least 15% of the home’s value in equity. In Canada, you usually must have at least 20% of the home’s value in equity or 35% for a standalone HELOC.
- Borrowers with credit scores above 620, though a few lenders may accept slightly lower credit scores
- Other eligibility conditions will apply, such as your debt-to-income ratio.
- Interest rates: adjustable rates with lowest rates starting at 7% to 8% in the US and Canada currently, but there’s a wide range based on lending institution and your specific situation.
- Maximum amount you can borrow: 85% of your home’s value in the US and 65% to 80% of your home’s value in Canada, after accounting for what you owe on the home. For instance, if you’re in the US and your mortgage is 50% of the value of the house, you may be able to borrow 35% of your home’s value in a HELOC so that your total amount borrowed on your home doesn’t exceed 85%.
- Draw period (the time you have to borrow money): 5 to 10 year terms.
- Repayment period (when you pay to repay everything you borrowed): 10 to 20 years.
- You can easily borrow what you need, when you need it. With a HELOC, you can borrow and repay against your HELOC multiple times during the draw period. This makes it a particularly good fit for purchasing new construction, which generally asks for payment in installments.
- You only pay interest on what you borrow.
- It usually has a lower interest rate than other types of financing, like unsecured loans or credit cards.
- You want funding to use for other expenses related to your new home purchase that may pop up over time, like renovations.
- You don’t have enough equity in your home. If that’s the case, then a HELOC may not provide enough funding to finance your new home purchase.
- You don’t want to risk your existing home. Since a HELOC borrows against your existing home, you risk losing your home if you can’t pay back what you borrowed. Remember that if you already have a mortgage, you’ll have to pay both your mortgage and HELOC back at the same time.
- You don’t want a variable interest rate. HELOCs do have fluctuating rates, though some lenders offer you the option to convert your variable rate to a fixed rate. You should check the max lifetime interest rate for any HELOC you’re considering and make sure you could still afford it if your rate rises.
Like a HELOC, a home equity loan is essentially taking out another loan on your home. Unlike a HELOC, a home equity loan generally gives you one lump sum upfront that you repay in fixed monthly installments at a fixed interest rate, much like a mortgage. The loan term will vary by lender and what options you choose, but can be as long as a traditional mortgage (20 to 30 years).
Who qualifies for a home equity loan?- Homeowners with at least 20% of the home’s value in equity, though a few lenders may allow you to have less.
- Borrowers with credit scores above 620, though a few lenders may accept slightly lower credit scores.
- Other eligibility conditions will apply, such as your debt-to-income ratio.
- Interest rates: 8% and up currently.
- Maximum amount you can borrow: usually up to 80 to 85% of your home’s value, after accounting for however much you own on the house.
- Loan term length: 5 to 30 years.
- A home equity loan is a better fit than a HELOC if you know exactly what you want to borrow and plan to spend it nearly all at once since you’ll get your funding all in one go.
- If you prefer having a fixed interest rate and know what your monthly payment will be.
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- You don’t have enough equity in your home. If that’s the case, then a home equity loan may not provide enough funding to finance your new home purchase.
- You don’t want to risk your existing home. Since a home equity loan is another loan against your existing home, you risk losing your home if you can’t pay back what you borrowed. Remember that if you already have a mortgage, you’ll have to pay both your mortgage and home equity loan back at the same time.
- You want to borrow in installments rather than all at once. If you don’t need the full amount of funding at once, then getting a HELOC will help you pay less interest for taking out the same total amount of money over time rather than all at once.
Unlike getting a HELOC or a home equity loan, a refinance means that you’ll replace your existing mortgage with a new mortgage so you’ll have one loan instead of two. When refinancing, you can opt to get a mortgage for more than what you currently owe on your mortgage and use the extra cash to pay for other purchases – hence the term “cash-out refinance”. You’ll likely end up with a new interest rate and new terms, so this option is only attractive if that rate and terms are as favorable as or better than your existing mortgage.
Who qualifies for a cash-out refinance?- Homeowners with at least 20% of the home’s value in equity, though a few lenders may allow you to have less.
- Borrowers with credit scores above 620, though a few lenders may accept slightly lower credit scores
- Other eligibility conditions will apply, such as your debt-to-income ratio.
- Interest rates: 30 year fixed-rate mortgages are currently around 7%.
- Maximum amount you can borrow: depends on the lender but typically up to 80 to 85% of your home’s value, after accounting for however much you own on the house, without triggering the need for PMI (private mortgage insurance).
- Loan term length: 15 to 30 years typically, but you can opt for shorter terms.
- If the interest rate you’d get now is better than the interest rate on your existing mortgage, it makes sense to refinance.
- You know exactly what you want to borrow, since you’ll get your funding all in one go with a cash-out refinance.
- If the interest rate you get now is higher than the interest rate on your existing mortgage, then refinancing your entire mortgage would mean paying more interest for your entire mortgage than you do now.
- You don’t have enough equity in your home or taking out that equity would result in you needing to pay for PMI (private mortgage insurance). Lenders generally require borrowers to pay for PMI if you borrow more than 80% of your home’s value.
- You don’t want to risk your existing home. Changing your mortgage term or rate could mean a higher monthly payment that you may not be able to afford.
Financing your existing home through a reverse mortgage.
For homeowners in Canada over the age of 55, a reverse mortgage represents another way to tap into the value of your home. With a reverse mortgage, you take out equity from your home in the form of a loan and don’t need to pay it back until you either move out, sell your home or die.
There are no minimum or monthly payment requirements, but you’ll still rack up interest that will get added to your loan balance and eat into your equity.
Eventually, that loan will need to be repaid, likely by selling the home. While reverse mortgages are available in the US as well, they’re a far less popular financing choice than in Canada because of better Canadian consumer protections and a lower eligibility age (55 in Canada instead of 62 in the US).
Lender Options |
|---|
Offers the Canadian Home Income Plan or CHIP Reverse Mortgage. HomeEquity Bank offers reverse mortgages directly and through a network of mortgage brokers across the country. |
Only available for those living in Ontario, Quebec, British Columbia or Alberta.
|
- For Canada: all homeowners on the title are 55 years or older.
- Homeowners who own 45% or more of their home’s value and live in the home as a primary residence.
- The home must be worth at least $250,000 in value.
- Interest rate: between 7 to 9% at the time of writing.
- Maximum amount you can borrow: up to 55% of your home’s value from HomeEquity or 59% of your home’s value from Equitable Bank.
- Repayment terms: you don’t need to make a payment until you move or sell, but remember that interest will still be racking up.
- Loan term length: 6 months to 5 years
- Early repayment fees apply for both companies.
- You want flexibility over your repayments. Reverse mortgages don’t require a set payment until you sell or move out of the house or the last borrower dies. But know that interest and fees will still be accruing when you don’t pay and decreasing the equity you have in the home.
- You can’t get a HELOC, home equity loan, or cash-out refinance. Typically these options have lower interest rates than a reverse mortgage.
- If you want to move out of the home you’re borrowing against soon. You’ll face prepayment penalties if you sell your home before the end of the reverse mortgage term and have to pay back your reverse mortgage.
Sell your existing home
This may seem obvious, but if you’re planning on residing in Mexico full-time, you can sell your existing home and use those funds to fund your purchase in Mexico. Since you’d be buying cross-border though, you won’t be able to make buying one property contingent on selling your existing home.
Get a mortgage from a Mexican Bank
You can get a mortgage from a Mexican bank, but you’ll need income and credit history in Mexico. You should also know that loan terms are shorter than in other North American countries and not only are interest rates higher, but the fees to initiate the loan are higher too – making the total cost of borrowing higher.
- Mexican citizen or non-citizen resident with income and credit history in Mexico.
- Minimum income and credit scores will apply, but vary by bank.
- Rates and fees: Interest rates are over 10% currently, but this doesn’t take into account the hefty fees that will make your total cost of borrowing closer to 13%+. To get a sense of what banks may be offering borrowers in terms of rates and fees, you can use the CONDUSEF (the National Commission for the Protection of Users of Financial Services or Comisión Nacional para la Protección y Defensa de los Usuarios de los Servicios Financieros) mortgage simulator to see examples of what different banks are offering borrowers – from how much you’d need to pay initially (including the down payment), to how much income you’d need to qualify, to your monthly payment, interest rate and fees. Note that the simulator doesn’t give you what you’d actually qualify for since your actual mortgage terms will depend on your specific financial history and borrowing requirements, but the simulator can help you identify which banking institutions to consider and understand what a mortgage might look like in Mexico.
- Loan term length: up to 20 years.
- Other loan requirements: you may need to get life and property insurance to get a loan.
Get a cross-border mortgage from Intercam
- US or Canadian citizens aged 18 to 68 years old with a credit score 700 or higher.
- The property you’re buying must be fully completed (e.g. not pre-construction or land) and valued at $250K USD or more.
- The property you’re buying is NOT in Tulum.
- You must put down at least a 35% down payment on the property.
- You have or are willing to get a checking account with Intercam Banco.
- Interest rate: 7% to 9%.
- Fees: origination fee is 2% of the home purchase price; other fees for underwriting and closing will apply.
- Loan term length: 1 to 25 years.
- Other key loan details: loans are made in USD. There’s no prepayment penalty for paying the loan back early. You must get a title report and insurance on the property.
- With rising interest rates in the US and Canada, Intercam’s rates are now more comparable to other personal financing options you may have in the US or Canada now. And the rates are competitive with Mexican mortgages.
- You want to buy in Tulum. Intercam doesn’t lend to those trying to buy in Tulum currently.
- You don’t have enough cash to put down a 35% down payment.
- You want to buy a pre-construction property or a lot of land, or a property valued under $250K.
- You have financing options available to you at either a lower interest rate and/or with lower fees.
Get a cross-border mortgage from Yave
- Borrower must be between 25 to 65 years of age with a minimum income of $22,000 MXN monthly and a FICO credit score score of 680 or higher.
- While Yave is mostly tailored for Americans, they can and have made loans to those from Canada, UK, France, Germany, and other non-US countries but processing times will likely be longer and more documentation may be required.
- The property you’re buying must be fully completed (e.g. not pre-construction or land).
- You must put down at least a 15% down payment on the property.
- Interest rate: 11.09%
- Fees: opening or origination fee is 1.99% of the loan. For properties in the restricted zone in Mexico, which is near the coasts or borders, you must also pay for a trust guarantee.
- Loan term length: 10 to 20 years.
- Other key loan details: loans are made in pesos. There’s no prepayment penalties. Minimum loan size is $1M pesos. Borrowers must get life insurance and property damage insurance, but title insurance isn’t needed.
- Yave might make sense if you don’t have a larger down payment option. Amongst cross-border mortgage lenders we’ve found, Yave is the only one that allows you to put as little as 15% down to buy a property.
- You’re willing to refinance later with a different lender at a lower interest rate. Yave’s interest rate is higher than comparable cross-border companies. If you are willing to refinance later though, once you have enough equity in the home, you could lower your interest rate.
- You want a fast, fully online process for getting a loan.
- You are willing to put more money down upfront to get a lower interest rate.
- You want a loan in USD rather than pesos. Yave currently only issues loans in pesos.
- You want to buy a pre-construction property or a lot of land. Yave doesn’t cover either of those.
Get a cross-border mortgage from Moxi
- Borrower must be a US citizen with a FICO credit score score of 680 or higher.
- The property you’re buying must be fully completed (e.g. not pre-construction or land) and valued above $350K.
- The property must be located in one of the cities or towns in Mexico that Moxi lends in (see full list here). Furthermore, Moxi has higher minimum loan size and eligibility requirements in states where title insurance is not available like Quintana Roo, Oaxaca, and the Yucatan.
- Interest rate: not disclosed on the Moxi site, contact them for details.
- Loan term length: 15, 20 or 25 years.
- Other key loan details: loans are made in USD.
- If you’re buying in one of the states where there is title insurance and Moxi has more favorable minimum loan size and eligibility requirements.
- If you have and are willing to put 35% down on your property.
- You want to buy a pre-construction property or a lot of land. Moxi doesn’t cover either of those.
- You want to buy in Quintana Roo, Oaxaca and the Yucatan. Moxi’s minimum loan sizes and eligibility requirements may be prohibitively high for you in these areas.
Get developer financing or payment plans
Developer financing options
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- You’ll have to check with individual developers to find financing options or contact us for help finding options.
- Here is one example of a development that offers financing or payment plans.
- Yana21 is one example of a development that offers financing or payment plans.
You’re interested in buying pre-construction or new construction and are buying from a developer who is offering financing.
It greatly varies by the developer, but an example would be having to pay 20% of the home’s price at signing, another 30% at the completion of construction and then financing the remaining 50% after delivery of your unit over 5 years at an interest rate of 7% to 10%.
- You want to buy pre-construction or new construction. Developer financing isn’t available on resale of existing homes.
- You are financially capable of and willing to put a significant amount down before delivery of your home. Most developer financing options will require nearly 50% or more before you get your home.
- You are looking for a longer financing term, such as 10 to 30 years. Most developer financing will only be for a few years, unlike the mortgages you may be used to in the US or Canada.
- You don’t have the funds to pay 30-50% before you receive your unit. Most developer financing will require significant payment upfront before delivery of your unit.
- You want to buy resale instead of pre-construction.
Get an unsecured personal loan
If you are out of better options, you could consider getting an unsecured loan in your country of residence. An unsecured personal loan is one that doesn’t require collateral, but instead is granted to you based on your financial history and finances. But be warned that unsecured loans can be quite expensive compared to secured loans due to the lack of collateral. While interest rates can start around 7%, they can also get well above 25% to 30%.
So only take this option after considering all your other options and making sure that the personal loan makes financial sense for you.
Personal loans are offered by many institutions, from your big well-known banks, to local credit unions, private lenders and fintech startups. Here’s some examples of institutions that do offer personal loans, but do your own due diligence as to their terms.
Type of lending institution | Example lenders in the US | Example lenders in Canada |
|---|---|---|
Large Bank | ||
Credit Union | ||
Other private lenders |
- Borrowers with good credit. While there are personal loan lenders who will lend to those with lower credit, you generally need a 700+ credit score to get the best interest rates.
- Borrowers with low debt-to-income ratio. The lower your regular debt obligations compared to your income, the better loan terms you’ll get.
- Interest rate: wide range between 7% to 35%+
- Maximum amount you can borrow: usually between $50,000 to $100,000, though select lenders may allow you to borrow more
- Loan term length: 1 to 7 years
- You have great credit and financials and qualify for an unsecured personal loan interest rate that’s as good or better than your other financing options.
- You don’t need to borrow that much to buy a home in Mexico, where $50K to $100K is sufficient for your needs.
- You’re looking to finance a pre-construction or land purchase in Mexico, for which there are very few financing options.
- You need significantly more funding than a personal loan can offer for your Mexico home purchase.
- You only qualify for a personal unsecured loan with a very high interest rate.
- You want to repay your loan over a longer period. Personal loans generally don’t offer loan terms for longer than 7 years.
Work with a Mexico mortgage broker
When researching options to get a mortgage to buy a home in Mexico, you’re inevitably going to stumble across some mortgage brokers focused on international buyers buying in Mexico. While these mortgage brokers can help you get a loan, be cautious about two things when working with them. When possible, it’s likely better financially for you to go directly to a lender to obtain a loan.
- The hidden fees: While these mortgage brokers may promise enticingly low interest rates, you should ask for all the fees and costs and calculate your actual APR or total cost of borrowing. Oftentimes, you’ll find that the APR is much higher than the stated interest rate due to high, hidden upfront fees. Be wary of any mortgage broker who isn’t willing to be upfront with you about all of the fees.
- The cost of working with a mortgage broker: While it may seem more convenient to work with a mortgage broker, that convenience will come at a higher cost. Mortgage brokers usually will charge you a substantial fee for their services. Ask about this ahead of time to avoid a nasty surprise.
Work with a Mexico mortgage broker
When researching options to get a mortgage to buy a home in Mexico, you’re inevitably going to stumble across some mortgage brokers focused on international buyers buying in Mexico. While these mortgage brokers can help you get a loan, be cautious about two things when working with them. When possible, it’s likely better financially for you to go directly to a lender to obtain a loan.
- The hidden fees: While these mortgage brokers may promise enticingly low interest rates, you should ask for all the fees and costs and calculate your actual APR or total cost of borrowing. Oftentimes, you’ll find that the APR is much higher than the stated interest rate due to high, hidden upfront fees. Be wary of any mortgage broker who isn’t willing to be upfront with you about all of the fees.
- The cost of working with a mortgage broker: While it may seem more convenient to work with a mortgage broker, that convenience will come at a higher cost. Mortgage brokers usually will charge you a substantial fee for their services. Ask about this ahead of time to avoid a nasty surprise.
Work with a Mexico mortgage broker
When researching options to get a mortgage to buy a home in Mexico, you’re inevitably going to stumble across some mortgage brokers focused on international buyers buying in Mexico. While these mortgage brokers can help you get a loan, be cautious about two things when working with them. When possible, it’s likely better financially for you to go directly to a lender to obtain a loan.
- The hidden fees: While these mortgage brokers may promise enticingly low interest rates, you should ask for all the fees and costs and calculate your actual APR or total cost of borrowing. Oftentimes, you’ll find that the APR is much higher than the stated interest rate due to high, hidden upfront fees. Be wary of any mortgage broker who isn’t willing to be upfront with you about all of the fees.
- The cost of working with a mortgage broker: While it may seem more convenient to work with a mortgage broker, that convenience will come at a higher cost. Mortgage brokers usually will charge you a substantial fee for their services. Ask about this ahead of time to avoid a nasty surprise.
Disclaimer: The options shown here are only for informational purposes and based on publicly available information at the time of writing. Please note that lenders may also change the eligibility and terms for their offerings from time-to-time. Any financing institutions or lenders shown are only meant as examples and are NOT an explicit endorsement or recommendation from Far Homes. Before considering any financing option, we recommend doing your own research and due diligence to ensure that the financing option is right for you, including calculating the true cost of a loan with all fees instead of just assessing the interest rate.
