Same Interest Rates Does NOT Mean You're Paying the Same Costs!

A happy first time home buyer with Evan!

Over the last month, I have had two potential clients give me a loan scenario to price out for them. When I told them the days rate, they both told me that 'the other guy' was quoting them the same rate. I told them that the way Road to Home Mortgage is structured, we should beat almost any other lender out there. The best way to compare fees and pricing is with a Loan Estimate. It is required of lenders to send out a Loan Estimate in 3 business days or less once you have specific information from a borrower (such as their name, income, address, etc). After reviewing my Loan Estimate to 'the other guys', I saved both of these borrowers thousands of dollars. One was over $4200 in just fees, and the other one was over $1700 in fees and $1600 in lower mortgage insurance for the loan. 

​While the rate might look the same, you still might be paying thousands of dollars extra in other fees!

Here are some things to look for on your loan estimate:
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• Are you paying points to get your rate? This means you are paying money upfront to secure a lower rate
• What are the total fees in Section A. (Origination Charges) for your loan on the loan estimate?
• Do they offer a free appraisal?  At Road to Home Mortgage, we have loan programs that offer appraisal credits for the cost of your appraisal!
• What is your monthly mortgage insurance (if you are putting down less than 20%)? I saved one of these borrowers $200 a year with cheaper mortgage insurance!
  
  

Here is a great resource from the Consumer Financial Protection Bureau that reviews the loan estimate: Loan Estimate Breakdown.

​Below is a screenshot taken from the website mentioned above. You can take 5 minutes to review the details of a loan. It could potentially save you thousands of dollars! 

Until next time!

​-Evan 

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