Does Getting the Best Interest Rate Matter?

Yes it does, and to some degree, no it doesn’t. The interest rate depends on your income, equity, and personal qualifications. The rate also depends on the type of financing you choose. The most important aspect of a loan is its benefit to you.  The best rate is not always the best deal. The total picture, in its entirety, must be carefully considered.

Here is an example:

You are refinancing to pay off just your current mortgage and you’ll save $300 a month but another program at a slightly higher rate will pay off all your credit cards, shorten your loan term by 10 years and save you $900 a month. Which loan is better for you? It would depend on your situation. Your age (years left until retirement), the amount owed on in credit card debt, if you pay them off on your own, and what plans you have for the savings.

Here’s another example:

You are buying a home and “Bank A” has a rate that is .125% less than “Bank B.” Does “Bank A” require a higher down payment? How is the service at “Bank A.”? Will it take longer to close? Will you be working with an experienced professional who you can call if you have questions or need assistance?  How much is your time worth? These are just a few of the factors that need to be included in your decision.

When all information is carefully weighed then you will be able to clearly see what the best deal is for you!

My area of expertise is NJ FHA and conventional financing. Feel free to contact me if you have questions about the right option for you.

Mark Robinson

732-207-8434

mark@njfhapro.com

 

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