While the client is always right, and we always provide the best rate and terms, we 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 clawbacks
Free home warranties
Professional mortgage planning
Low lender fees (if applicable)
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.
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