How Do You Know You are Getting the Best Terms on the Biggest Loan of Your Life?
Many of our clients make much ado about not wanting unnecessary or unauthorized “inquiries” on their credit. Conscientious credit rating maximizers know that too many inquiries can cost you a few points!
But what is a few points when compared to months or years of paying a higher rate of interest simply because you didn’t know you could spend less on your mortgage?
For example, on a $300,000 mortgage, just a quarter point of additional interest rate can cost you over $60 a month!
For those of us in the real estate transaction industry, it is very perplexing and sometimes frustrating to learn that buyers or refinancers only got one quote on their way to the altar for one of life’s biggest financial commitments. We spend an average of an extra ten minutes a closing explaining all the new Dodd-Frank generated disclosures to our clients only to find that once again – governmental attempts to facilitate comparison shopping have failed to achieve the goal. Basically, the forms are, for the average person, too complicated. The consumer is also required to invest more time and brainpower and often take the first offer of rates, points, insurance, etc., and just pray it was a good decision.
How many additional quotes are “enough”? The Housingwire.Com publication suggests SEVEN (7)!!! why dont potential homebuyers shop around for their mortgage?
It is a nice short article and well worth clicking on the link!