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After seeing my friend's mortgage statement, I realized everyone focuses on the wrong rate
I kept telling him to just look at the interest rate, but his broker got him a 4.2% rate with $2,500 in lender credits that covered his closing costs, while the bank's 4.0% came with $3,000 in fees, making the broker's deal actually cheaper over the first five years.
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hernandez.jesse1mo ago
Exactly. You have to look at the total loan cost, not just the rate. That lower rate with high fees is a trap for people who don't run the numbers. The lender credits on the slightly higher rate can save you thousands up front. Brokers often have more room to play with the pricing like that compared to a big bank. Always get the full breakdown and do the math for your own time frame.
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kai4631mo ago
Yeah, that part about it being a trap for people who don't run the numbers is so true. It feels like they're betting on you just seeing the lower percentage and signing. Makes you wonder how many people actually get tricked by that.
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