Is the Best Mortgage Rate Always Important?
Mortgage clients constantly say to me "I want the best mortgage rate. What rate do you offer?"
While the client is always right and I always provide the best rate and terms according to the application, mortgage clients sometimes do need to consider the ‘extras’ when selecting the best mortgage for their unique situation.
- Different annual pre-payment allowances
- Varying monthly pre-payment privileges
- Cash back options
- Missed payment flexibility
- Line of Credit and Multi-Product mortgage options
- Mortgage readvanceabililty
- Early payout ability and corresponding penalty calculations
Clients can be swayed by even a 0.05% savings in mortgage rates. But when you do the math, the relative importance of the ‘extras’ becomes clear. A 0.05% savings on a 5-year mortgage in the amount of $500,000 mortgage equates to:
- A difference in monthly payment of only $14
- A savings of just $1,208 over five years on your mortgage balance
Opting for the right mortgage with a lender who offers generous conditions on even just one of the above parameters could offset this 10 times over.
Something to consider the next time you're mortgage shopping or I would be happy to match you up with the best rate and the most advantageous product for your needs.
Jerry Sims, AMP
Ambro & Associates Mortgage Consultants Ltd.