We get phone calls from rate shoppers every day. Unfortunately, it’s very difficult to quote a rate over the phone because there are so many variables to calculating an accurate interest rate today. Loan value, program type, credit score, loan amount all have a major impact on what kind of interest rate a lender can offer.
Another important variable is rather or not origination points are included in the quote. (Watch our video explaining points here!) You could call seven lenders and get seven different quotes depending on how they are calculating your interest rate. A lot of times the lender with the lowest rate wins out but isn’t necessary the best deal for the customer.
Why would I not want the lowest interest rate???? Great question and we’re going to answer that for you now. Without asking the right questions you can’t assume charging points is in everyone’s best interest. Buying lower interest rates result in lower total paid interest but also generate greater upfront expenses. You really need to consider how long you realistically plan to keep the mortgage on the property. Are you going to sell the home in 2-3 years? Are you buying a small home and plan on growing your family? Is a new job opportunity in the distant future that may require you to relocate? Are you planning on refinancing in the near future?