When shopping for a mortgage, you should ask for zero-zero quotes from the lenders you are trying to compare. This means their quote will not include buy down points or origination fees. This is a much easier way to compare who is providing the better quote. Mortgage buy down points and origination fees are mechanisms that lower your mortgage rate by paying upfront interest.
If you try to compare quotes with varying points or origination fees, it can get messy real quick. I’ve seen it confuse even the most seasoned real estate agents. Mortgage companies know this and some try to use it to their advantage making their quote seem better than it really is.
You also want to be sure you are comparing quotes on the same type of loan. It sounds obvious, but a mortgage officer might propose a different type of loan that might also work for you – as they should. But as you evaluate it, remember you are now comparing different mortgage programs. If you want to compare rates, you should obtain the same quote from another lender.
Mortgages can be confusing. If you need help deciphering mortgage quotes or have a question you wanted to ask but… Don’t hesitate to contact me. You should feel confident about your financial decisions. As a former mortgage professional, I am here to help you find clarity.