You Must Look at Loan Fees & Compare
Posted on | October 26, 2008 | 1 Comment
Once again I had a potential customer who decided to go with another company who got them a rate that was .250% below what anyone else was quoting and it looked like a great deal from the original GFE that they were given. Then, about a week after they closed the refinance loan, the wife started to put two and two together and realized the balance they refinanced was really high. She pulled out the paperwork and saw over $9,000 in fees and wondered if that was right. After pulling out the Good Faith Estimates she had received from a couple of other companies, I got a phone call.
It wasn’t good news that was delivered and there was nothing they could do about it now. They DID get the rate and they DID pay for it. You must understand the rate is not always the most important thing to consider on your loan; the overall cost is. Make sure you get with your loan officer and he or she explains thoroughly how much your loan will cost you in terms of time of ownership vs. money saved by rate. It is very easy to pay more money for a lower rate and never make up the difference. You are responsible to ask the right questions and know what you are signing and not to fall for the smoke and mirrors.
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October 26th, 2008 @ 6:25 pm
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