By: RCB Bank | Category: Financial Services | Issue: October 2018
Get$Fit Tip: Compare lender fees for better savings.
Interest rates are restricted by market conditions. Your options are limited.
Buyers often shop interest rates, choosing the lowest rate possible to help their overall savings over the life of the loan. Yet, rates change daily, sometimes more than once per day depending on different economic factors.
When comparing lenders’ rates for secondary market financing, all lenders base their rates off the same market trading; therefore, all quotes should be similar, typically within .125 percent, .250 percent at most.
Lender fees vary from lender to lender. You have more options to lower your costs.
Lender origination charges, application fees, processing and underwriting fees can vary significantly between lenders. The best way to compare lenders is to request Loan Estimates. Their fees will be listed under Closing Cost Details on page 2, section A.
You can also cut costs by comparing home insurance coverage and premiums.
Oftentimes, the largest expense on your Closing Disclosure is home insurance, another expense that varies between companies.
Generally, you will need 14 months of home insurance set aside in your escrow account paid at closing. If you choose a policy that charges $1,800 annually versus a $2 ,500 annual policy, you can save $800 at closing.
Know where your money is going.
Ask your lender plenty of questions. A good lender can answer all your questions and make you feel comfortable about your spending decisions. Buying a house is one of the most expensive things you will buy. Why spend more than you have to?
Opinions expressed above are the personal opinions of the author and meant for generic illustration purposes only. For specific questions regarding your personal lending needs, please call RCB Bank at 855-BANK-RCB, RCB Bank is an Equal Housing Lender and Member FDIC. RCB Bank NMLS #798151. Alex Penny NMLS #1535836.
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