It is a cold Monday morning along the lake shore and I am definitely looking forward to the Christmas Holiday this week. Before I have too much fun with the family, I do still have a job to do. In the spirit of Christmas, I wanted to write a post giving you some insight on why the best rate on the wrong loan structure is still a bad deal.
Over the last week, I have had several clients call me only to be disappointed to find out that rates in the "real" world are not as good as those advertised on TV or the Internet or even those mentioned by the media. Allow me to share some insight with you on the rates and rate quotes.
First of all, each rate quote is custom. The fact that you are reading a rate on a website does NOT mean you qualify for that rate. This is especially true if your credit score is less than 720 and you have less than 20% equity. Please read the What Are Rates post for more info.
I like to explain rate quotes like a teeter-totter. The higher the cost the lower the rate, the lower the cost the higher the rate. The perfect rate is generally the one that balances your cost with your rate in an option that works for you.
So how do you determine what that option is? That is where I come in, my clients get the benefit of multiple options with assistance in determining which option is best for them, not the bank.
Too often, clients assume the lowest rate is always the best deal. That is what companies like Quicken, Rock Financial and even some local lenders are banking on. By advertising a really low rate, they got you in the door. Most people would say "So what, I got a great deal". That would be true if you looked only at the rate. Once you take the cost into account and figured what your money really cost you, plus the missed opportunity cost, at the end of the day, you actually got a worse deal.
If you want expert advice and guidance from a professional we look forward to working with you. All lenders who are good are extremely busy. Please be patient as we do our best to serve every client with attention to detail. You can get your application started online at our website http://www.danmoralez.com/.
If you just care about rates and find no value in professional expert advice and guidance, please continue your search elsewhere as we are not the lender for you.
As of Monday the 22nd, the bond market continued to give back recent gains which is continuing to put pressure on mortgage rates. At the time of this post we are down around 22bps from the close on Friday. This will continue to add pressure to mortgage rates. The sweet spot for mortgage pricing may have come and went.
I wish everyone a Happy Holiday Season!
