Mortgage clients constantly tell me “I need the best mortgage rate. What rate do you offer?”
While the client is always right, and I always provide the best rate and terms, I do convey the need to look at the “extras” when selecting the best mortgage. Extras include:
- Low prepayment penalties
- Generous pre-payment privileges
- Cash back Options
- Cash back clawbacks
- Free home warranties
- Professional mortgage planning
- Low lender fees (if applicable)
- Portability (moving your mortgage from one house to another house)
- Missed payment flexibility
Clients are attracted by even a 0.1% savings in mortgage rates. But when you do the math, the relative importance of the “extras” become clear. 0.1% savings on the typical 5-year $250,000 mortgage equates to:
- A difference in monthly payment of only $14
- A savings of just $346 over five years on your mortgage balance
Just one of the extras above could offset this 10 times over. Think about that next time you’re mortgage shopping.
I guarantee that I will give you the best mortgage rate and package that suits you and your family’s needs for the short and long term. Feel free to contact me at any time to discuss your mortgage needs.