Home Purchase Loans
Make Lenders compete for your Business...
Here are some reasons why it is important to have lenders compete for your home equity loan business:
- Sometimes you can have one lender lower the Attorney Fees that are charged in the refinance process.
- The Points charged on a loan are not set in stone and can be typically reduced a ¼ point or more.
- Interest Rates are definitely negotiable and if you are entertaining multiple offers from prospective lenders you might be able to get mortgage lenders to reduce the interest rate by a ¼ point or more.
- Document Fee - always ask for a discount on these or if the competing bids are matched ask the preferred lender to discount the document fees to ZERO.
- It is extremely important to gather multiple refinance quotes from various mortgage lenders if you want to get an excellent deal. By not having mortgage lenders compete you will might not be able to negotiate the ideal mortgage for yourself and even potentially leave thousands of dollars on the table.
Dictionary
Points
The site allows lenders to post rates via point ranges. Points are broken out on the site for Discount and Origination. The definitions for each are as follows:
Discount Points = Interest Charges paid up-front when a borrower closes a loan. A point is equal to 1 percent of the loan amount (e.g. 1.5 points on a $100,000 mortgage would cost the borrower $1,500). Generally, by paying more points at closing, the borrower reduces the interest rate of his loan and thus future monthly payments.
Origination Points = A fee imposed by a lender to cover certain processing expenses in connection with making a real estate loan. Usually a percentage of the amount loaned, such as one percent.
Fees
Up-front costs associated with a loan.
Application Fee
The fee charged by the lender to the borrower for applying for a loan. Payment of this fee does not guarantee that a loan will be approved. Some lenders may apply the cost of the application fee to certain closing costs.
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