I wanted to update you on this.
When talking to a new client for the first time, the first question I usually get is the “Best Rate Question.”
While rates are extremely important, you need to be aware that when a mortgage lender offers the best rate in the industry, there is usually a catch.
For example, right now, there is a Mortgage lender that offers the best rate available, but it is only for a 6-month mortgage, and if you don’t renew with that lender in 6 months, you have a 1% penalty for paying them out. (Quick math – 1% in 6 months equals 2% over one year). So you are in fact possibly paying 2% over their quoted “Best Rate”
This isn’t inherently a bad thing, as some mortgage lenders typically offer very low rates; however, who knows what the rates will be in six months.
Always seek professional advice before jumping too quickly into the “Best Rate”
