If you’re purchasing a home or property, or refinancing your current mortgage, you already know that interest rates are the lowest in history. This is a great opportunity for homeowners and new home buyers to take advantage of these low rates, and save thousands of dollars over the life of their loan.
At Indigo Mortgage Colorado, we are unfortunately seeing some big national and internet lenders take advantage of the situation. They depend on borrowers not shopping their mortgage and comparing costs, and many are charging borrowers exorbitant fees to get a low interest rate.
We encourage all borrowers to at least shop their loan with two lenders. If both lenders are offering the same low rate or one is offering a lower rate than the other, its imperative to look at what it will cost to get that rate.
The fees borrowers need to look at come in the form of Origination, Discount, Admin, Underwriting, and Application fees. What these fees really amount to is what it costs the borrower to “buy down” the interest rate.
Remember, never look at title fees or escrow fees as these fees will be exactly the same with all lenders. The only fees a lender has control over are the Origination, Discount, Admin, Underwriting, and Application fees.
The question you want to ask all lenders is “What is it costing me to get that rate?”. The lowest rate is not always the best deal for the borrower if it’s costing many thousands of dollars up front to buy it down.
At Indigo Mortgage Colorado, we are always transparent on what our fees are and we will even help the borrowers evaluate other offers after we’ve submitted ours.