now this particular video we should you buy down to get a better interest rate
0:03okay let me give you the lowdown a mortgage rates and fees brash you talk
0:07to a realtor maybe a few lenders and you feel good about occurred
0:10financing mortgage plan when suddenly a TV commercial comes I’m you seen
0:14interest rate you save yourself
0:16that’s gotta be too good to be true let’s step back for just a minute
0:20when comparing quotes from different lenders it’s a good idea to compare not
0:24just the interest rate
0:25but the total cost for that rate and the length of time it’s good for
0:29ask your loan originator to break down what charges are included in the
0:33origination fee
0:34this fee includes loan processing
0:38application underwriting and administration charges associated with
0:42the loan
0:43the adjusted origination fee is the origination charge
0:47plus any credit for charge what’s your point
0:50from the chosen interest rate take this amount into consideration when shopping
0:54for the best interest rate
0:56look first at the origination fee and then with the total adjusted origination
1:00fee is
1:01for the rate being quoted to you a lower rate what always see more attractive but
1:06sometimes we have to take our rate goggles of
1:08in look at the whole picture and see if it’s worth it now some people have been
1:12advised to consider buying down your interest rate which means
1:15paying money up front for a lower interest rate long-term
1:19the best way to figure out that were there is a fine now
1:22what their rate is a you were quoted find out what your principal and
1:25interest payment will be
1:26and then if they ask you hate if you if you were actually lower the rate by
1:31paying this amount of money
1:32final with that principal and interest payment looks like and ask yourself
1:36what your break even know the words
1:39if if you add this spend or pay a thousand dollars
1:42and that thousand-dollar seaview ten dollars a month
1:46then it will take you all 100 munter 8.3 years due to break even or two may begin
1:52makin
1:52of making that my making money on that initial investment someone make sense in
1:57that scenario because most people or only in their house
2:00for five to six years now this apples apples comparison will help you
2:04when you’re looking at quotes from different lenders always tell your
2:08lender
2:08where your estimated closing closing date is so they can quote
2:12you a rape they will get you to your closing day rate and/or the credit
2:16charges attach their rate vary depending on your lock period
2:20a rate that’s quoted on a 30 day lock will always be more favorable than a
2:2445-6 your 70-day lock period
2:27look at the whole picture all help you get the best possible rate
2:31please let me know if we can help your subscribe to my YouTube channel
2:35and reporting in for your information in your first last name email address I’m
2:39gonna send you some spectacular videos
2:41are low down no down payment mortgages crock right ways to improve your credit
2:45score just to name a few
2:47thanks for watching this video and have a great day