February 24th, 2019 10:45 AM by BILL WILBANKS
I still speak with callers all the time that believe all mortgage pricing is basically the same no matter the lender, so why shop around. That couldn't be more incorrect.
Basic closing costs will be similar for title closing agents, third party service providers such as surveyors, and local and state mortgage related taxes. Where is the difference?
Everyone offers the same rates. But, if you price shop at all, you'll quickly see the real differences in quotes relate to lender fees and the amount of "Rebate" the lender passes on to you to offset your loan costs or how many discount points they charge to buy down to a lower rate. It can be thousands! Rebates are real money.
Here's how it works, the higher the rate a lender offers you, the higher the Rebate will be to offset your costs or that they can keep in their pocket. All you may see is a lower rebate given to you and they retain the difference. If you don't compare rebates you won't know what you aren't getting. So using the same rate for comparison, it usually comes down to how much of the rebate the lender passes along to you or keeps in their pocket. Our Rebates are our price advantage....compare Rebates!
The only way you can truly compare what is being offered is to request quotes at the same rate, the same day, on the same loan details. Then compare bottom line numbers, I.E.: What is the final loan amount on all quotes, telling you how much in loan costs is getting rolled in the new loan and bumping up your payment or reducing your proceeds if cashing out, how much money do you have to bring to closing or more important...how much rebate is being offered you to offset your costs at closing and therefore impacting all the above. The less rebate passed on to you in the deal, the more it costs you folks. As often as not, you won't see origination point charges because it's buried in the rebate offered to you (not passed along). So...compare rebates against your total cost and what the final loan amount offered will be! It's all about the bottom line!
I have a real rebate edge daily. Request my estimate now...SURPRISE YOURSELF!