Do this one thing and save .28-.55% on your Mortgage Rate.This Secrets lead to Lower Rates,Get EGAIN

Would you like a no hassle Mortgage/ Consultation? Call Kevin Retcher (O) 703-799-5626, (c) 703-201-6138
Link to the paper by the Federal reserve on Egain, Tips on how to save .28% - .55% on your mortgage rate. You do not have to be sophisticated to do.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3422904

Navigating the Mortgage Market: How to Save Money and Optimize Your Efforts

When diving into the complex world of mortgages, understanding how to secure the best possible deal can lead to significant savings. Recent discussions highlighted by a LinkedIn post I came across bring attention to the disparity in interest rates paid by borrowers of varying financial sophistication.

Understanding the Interest Rate Gap

Research indicates a pronounced gap, with a difference of approximately 0.55 basis points or 0.55 percent in interest rates between top-tier and bottom-tier borrowers. Those less adept at navigating the financial landscape frequently end up overpaying, missing out on the most competitive rates available. For instance, FHA borrowers, on average, could benefit significantly by seeking just one additional lender quote. This simple step could yield savings of up to 55 basis points—translating to savings of roughly $6,250 on a $250,000 purchase.

Why Interest Rate Dispersion Matters

The disparity is often most noticeable among borrowers with low credit scores, specifically FHA borrowers and clients of larger banks. A common mistake is assuming that lower general interest rates equate to good personal rates, often discouraging further lender engagement. The study suggests that larger lenders with expansive market power can contribute to greater rate differences due to higher costs and operations.

The Influence of Advertising

Even marketing plays a role. Trusting large advertising campaigns from banks and lenders seen on late-night TV might not always steer you towards the best deal, as the cost of advertising could be reflected in higher service fees.

The Role of Competition

Interestingly, the data suggests that even among seemingly identical borrowers, the most financially savvy can secure rates about 23 basis points lower than their less informed counterparts. Encouraging competition among lenders leads to more favorable terms and what we call 'e-gain.'

Key Takeaways for Mortgage Shopping

The authors of the study, from the Federal Reserve Bank of Philadelphia, emphasize the value of competitive shopping in the mortgage market. One glaring issue contributing to rate disparity is consumers blindly following their real estate agent's lender recommendations without considering possible affiliations.

Strategies for Better Mortgage Rates

Getting Pre-Approved: Always get a pre-approval and provide the necessary documents for better negotiation power.
Multiple Quotes: Seek quotes from multiple lenders and brokers, checking in with friends or family for recommendations.
Avoid Sole Reliance on Recommendations: Even if you trust your agent, verify lender affiliations to avoid potential conflicts of interest.
Explore All Options: Not all lenders and brokers are equal. Different providers excel in various loan types, like VA, conventional, or jumbo loans.
Builder Lock-Ins: Be cautious with new construction incentives that tie you to specific lenders, as they can limit your bargaining capabilities.
Concluding Thoughts

In summary, Engaging at least two lenders, including a mortgage broker, can ensure you get comprehensive advice and favorable deals. Engage with this process early and frequently to understand pricing trends and secure the best rates before finalizing your purchase.
⭐ Book the Calendar at https://calendly.com/kevin-retcher-first-meridian-mortgage/consultation?month=2024-08

⭐ Ready to Get Pre-Approved? Head to www.firstmeridianmortgage.com , After filling out the form, Text me at 703-201-6138 so I can alert my team!
Kevin Retcher
Loan Officer, Insurance Agent, Realtor
(o)703-799-5626
(C) 703-201-6138
Email Kevin@firstmeridianmortgage.com
Website: https://firstmeridianmortgage.com/

Loan Application: https://www.blink.mortgage/app/signup/p/firstmeridianmortgagecorporationx?campaign=loanapplication/
***************************************************************************
Live Mortgage rates
https://firstmeridianmortgage.com/get-live-rate/#null/
First Meridian Mortgage, 8305 Richmond Hwy 12A, Alexandria VA 22309
Licensed in VA,DC,MD - NMLS 180004, NMLS 116922 www.nmlsconsumeraccess.org
The Commissioner of Financial Regulation for the State of Maryland will accept all questions or complaints from Maryland residents regarding First Meridian Mortgage MD-4272 at 1100 N. Eutaw Street 611 Baltimore, MD 21201, phone 888-784-0136 or 410-230-6077.

KSA Insurance Agency, 8305 Richmond Hwy 12A, Alexandria VA 22309
Jobin Realty, 5592 Backlick Road. Springfield Virginia, 22151 703-642-8500
Licensed realtor in Virginia

Видео Do this one thing and save .28-.55% on your Mortgage Rate.This Secrets lead to Lower Rates,Get EGAIN канала Kevin Retcher
#firsttime, MortgageSavings, #EGAIN, #InterestRates, #MortgageBroker, #HomeLoanTips, #FinancialSavvy, #LenderRecommendations, #BuyerBeware, #RealEstateAdvice, #HomeBuying, #MortgageDisparity, #LoanShopping, #SmartBorrowing, #FirstMeridianMortgage, #KevinRetcher