Is the Best Interest Rate the Most Important?2015-10-14 11:21:18 Posted By Jila Rezai
Mortgage clients constantly tell us "I need the best mortgage rate. What rate do you offer?" While the client is always right, and we provide the best rate and terms, we do convey the need to look at the "extras" when selecting the best mortgage.
- Generous pre-payment privileges
- Cash back
- Missed payment flexibility
When you do the math, the relative importance of the "extras" become clear. A 0.1% savings on the typical 5 year $250,000 mortgage equates to a difference in monthly payment of only $14, which is 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 the next time you're mortgage shopping.