This is a continuation of a series of posts inspired by a conversation with an acquaintance who revealed a good deal of ignorance about the real estate profession. Because I think an educated market benefits everyone, I intend to debunk as many myths as possible. I hope you find this information useful. Please feel free to comment!Myth #11: There is no real benefit to “shopping” for a mortgage among multiple lenders.
FACT - A difference of even half a percentage point can mean a considerable savings over the life of a loan. For example, the difference in the monthly payment on a $100,000 mortgage at 8% vs. 7.5% is about $35 per month. Over 30 years, that’s $12,600.
But unless you've done this shopping before though, your best course is to work with a reputable mortgage broker. The broker will shop for you to find the best possible rate for your situation.
1 comment:
Good idea with mythbusting! You join the ranks of Adam Savage and Jamie Hyneman, but with a more practical focus. One myth that was busted for me when I bought a home at age 20 was that there are not always tax benefits - you have to pay enough interest and taxes, combined with other eligible deductible expenses, to realize the tax benefit of filing other than the standard deduction. Owning a home in a low-income neighborhood (with a corresponding low price tag), I am far from paying enough to have any tax effect.
Post a Comment