Is Your Mortgage Shopping All About Rate …If So …Are You Setting Yourself Up To Be Bit In The Butt….
The short answer is that most consumers would say “yes”, Rate is All Important but is this the right answer…. My answer to that is yes and no. While rate is important it is not the only thing you should be thinking of or reviewing when you are getting a mortgage for your new purchase. Now, most people would say that sounds like a sales pitch. The reality is that mortgage flexibility, contract restrictions and advice all have a definitive impact on borrowing costs. And most people do not discover how much impact this can have until after your mortgage is already closed and usually only finding this out when you have tried to change or do something different with your mortgage.
Mortgages are long term investments which you have to look at all your options based on your current situation and future situations. Taking the lowest of the low rate at the time may turn around and bite you in the butt come the future. The Mortgage Rates sites that also post multiple rates from banks to brokers can also be misleading as well. The lowest rate there, may not work for your situation or what you are wanting long term. IE some lenders for the super low rates have to be high ratio loans; ie insured loans.. if you are putting 20% down or more, you would not get access to this product. And that is just one example. Making sure you have the right person working for you is a good key point as well. Like any business, not everyone is stellar at their job. Besides that I know that commission has become a bad word in todays society, however the commissioned mortgage agent, does not work for any one lender – they work at getting you the best mortgage you qualify for and informing you the whole step of the way. It is more of a relationship and a great agent will stay with you even after your mortgage has closed and the “deal” is done.
To Read More… Did You Know? Check out this post
Building on that post….
Conventional mortgages you can still get 30 and 35 year amortizations… but from reading above do you think these are the best ideas for the future? How old will you be when you are mortgage free, even with doing pre payment options and then on top of looking for the “best rate”, on a 30 or 35 year amortization, that best rate is not doing much for you in terms of overall interest paid for the course of your mortgage. Are you taking that 30 or 35 year to have lower payments? maybe then your purchase price is higher than you should be looking? Did you know that some lenders offer awesome rates and pre payment options and only limit the fact that you can not port or if you can it would only be a straight across port ($ for $) … for a first time home buyer this may be the perfect solution! Great discounted rate and 98% of all the options. Or maybe you need something with full portability so you will take a rate a bit higher to have all the bells and whistles…..
What I am trying to get across here, is make sure you have options. And the options have to be what will fit your current and future plans. Mortgages are more like puzzles and making sure you have all the correct pieces to put your ideal situation together. You may not think you need those options now, but who knows what the future holds. Ask questions. Lots of questions. You want to make sure you have someone in your corner, explaining all your options to you and getting you the best rate possible! So I guess I can go back to the commission point. People that work commission have a vested interest in making you happy. If you have a deadline to meet they are usually in the trenches with you. The salaried person, when the home bell rings, they are packing up and going home. To them really it does not matter if things all work out the way you want them to in the end – they get paid regardless.
Paring you with the Right Mortgage Rate & Product! It is the only way to make the best decision for yourself and/or your family.
Working with a Licensed Mortgage Agent is a step in the right direction and in the end you will be paired with the Best Mortgage Rate and Product for YOU! Call/email me, I can help explain your options.
Licensed Agent with The Mortgage Group AB