The Cheapest Rate Isn’t Always the Cheapest Mortgage: Compare Loan Estimates With Travis Egan

The Advertised Rate Is Only Part of the Story

The cheapest mortgage interest rate is not always the cheapest mortgage. Travis Egan wants veterans and military families to understand that a rate by itself does not tell you what a loan will really cost. Two lenders can quote the exact same rate and still charge very different amounts to close.

Same Rate, Different Fees

One lender may include discount points in the quote while another does not. One may carry higher lender charges built into the closing costs. On the surface the offers look identical, but the cash needed at the closing table and the total cost of the loan can be far apart.

Compare Loan Estimates, Not Advertisements

That is why Travis tells veterans to compare the loan estimates, not just the advertised rate. A Loan Estimate lays out the lender charges, points, credits, and cash to close in a standard format, which makes it possible to line up two offers side by side and see where the real differences are.

What to Look At

When you compare, look at the lender charges, the cash to close, and the total cost over the time you expect to keep the loan. A lower rate with higher upfront costs may make sense if you plan to stay for many years, but it may not if you expect to move or refinance sooner. Understanding that trade is what lets you choose with confidence.

Have Questions About Your Loan Estimate?

If you are comparing offers and want help making sense of them, reach out to Travis Egan with your questions. He is here to help. Semper Fi.

Sources

VA.gov
BenefitS.va.gov
ConsumerFinancialProtectionBureau.gov
HUD.gov
Investopedia.com