Here Is What Your Client Needs To Know
We’ll make this short and sweet. It is never about the best rate. It is about the best MATH, period. There is NO other answer than that. So why isn’t the lowest rate the best deal? First, lower rates come with more points and fees. That is not the real issue, however. There is a break-even point to contend with when paying points and fees, tax deductions to figure out. In the case of a purchase loan, points are tax deductible in the year that you pay them. That is good, but then again, so is the interest you think you are saving. With refinances, the points are usually only deductible only over the full term of the loan. That could be 30 years, making the benefits and the break-even point years down the road. So why do lenders advertise really low rates with all of those points and fees? Because they know most consumers look at the rate, not the MATH. That advertising strategy works really well. We don’t play that game. How about the lowest APR? Generally, the more points you pay, the lower the APR. True, but not the answer.
We take apart each rate and fee quote to find out what the best MATH is, period. It only takes a few seconds for a professional to do it for you using a computer. After that, it’s your decision. Click here to see how we can help.