When you combine a mortgage transaction with a deadline, meaning a “closing date”, the dynamics change. While I could make the commodity versus service argument on a refinance just as compelling, you are viewing this more than likely considering a purchase money loan transaction. When you look at the "lowest rate", realize you are still looking at an advertisement. Someone is … [Read more...] about Good Rate, Bad Date
In addition to points, different lenders may have different loan-related fees. Lenders charge fees in association with third party services (such as appraisals, credit reports, tax service, etc.) AND they charge fees in association with their own services (processing, underwriting, closing, etc.). There is a significant amount of coordination involved with a mortgage … [Read more...] about What Are All of These Fees?
There is a lot of information behind a rate quote. Rates + Costs = Quote Lenders can offer multiple quotes on the same product with the variables being costs. Think along the lines of "how much do you want to pay today to get the lower rate for the life of the loan?" Lower rate quotes typically mean greater amounts due at closing. This is where the "fine print" comes into … [Read more...] about Inside The Rate Quote
With so much information available through the web today, shopping for a mortgage can be overwhelming. While most “rate” advertisements would love for buyers to think a mortgage transaction is as simple as a purchasing any commodity, the fact is, there is a lot more to a mortgage transaction than can be conveyed through a simple rate quote. Shoes or a Mortgage? For a … [Read more...] about The Difference Between Shopping for a Mortgage and a Pair of Shoes
If you are like most shoppers who are deciding on a mortgage, it is easy for your eyes to gravitate to the lender offering the lowest rate, especially when reviewing dozens of them online or speaking to a few "sales people" on the phone. If you are buying a home and your mortgage shopping experience starts this way...be careful. The Internet is Truthful, Right? Just like … [Read more...] about Why Are Rate Quotes Different?