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Rates are flat today. Today’s rates with no lender fees are 3.5% APR on a 30 year, 2.75% APR on a 15 year and 2.75% APR on a 10 year. (click here for details)

Every once in awhile I like to take an opportunity to answer questions from you guys. So today I am going to answer a question that was posted on Facebook a few days ago.
Check it out in today’s video:

The question was this – “You always recommend asking for the interest rate with NO lender fees. Does this mean that you are asking the lender what interest rate they will charge if they absorb all the lender fees? Also, what fees are outside of lender fees, if any?
This is a great question and one that comes up a lot. Here we go! Yes, asking lenders for their lowest possible rate with NO lender fees makes it easier to compare each lender side by side.
Every lender has their own set of fees associated with the mortgage transaction. This is usually a processing fee, underwriting fee, credit report and any other junk fees they can come up with.
The problem is – some lenders will have very aggressive rates but have some large lender fees to make up for it. The NO lender fee technique levels the playing field for all lenders.
Ok, with that being said. Yes, there are other fees associated with a mortgage transaction. There are title fees, closing fees, transfer tax and appraisal. These are third party fees and should be very similar from lender to lender.
So this technique is strictly for shopping for the best lender. This does not mean this is the best loan for you.
Let me give you a few examples. If you are moving in a few years you would want to consider a NO closing cost option. This rate would cover Lender fees AND all other fees associated with the loan.
If you plan on being in the house forever you should take the lowest rate possible and pay all your costs either out of pocket or in the new loan.
Your situation is unique. However, any experienced loan officer could give you a break even analysis to let you know what option is best for you.
If you thought this was good information or worth discussing, help me bring transparency to mortgage lending by sharing today’s episode on Facebook or Twitter.
Let’s change the way people shop for a mortgage…forever!
– Mike
PS. To ask a question, get advice, or find out if you’re getting the best deal possible on your loan, just post a comment below.

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