I talk to people very often who are always in search of the best mortgage rate. I understand the sentiment, but what consumers need to know is that rates change all the time - as in throughout the day. The worst thing you can do to youself is trash the relationship with your current mortgage lender because someone quoted you a better rate.
Keep in mind that for the most part, the money costs the same, it just depends on where you put the fees. some lenders hide fees in origination fees, others in discount points, and other don't hide them at all.
While its discouraging to see, it affects the borrowers more than it affect the lender that loses the business. I have also heard this one "they quoted this rate in writing, and then when I got to settlement, it was all different." Here is the sad part. At that point, I can't really help. Most likely that rate that was quoted is gone AND it would take a few weeks to start and process the loan. Oh yeah, now your deposit money is at risk if you don't settle, so what happens? The lending industry gets another bad rap. But they put it in writing? well, that is true and you can pursue them legally - AFTER you settle on your home for the higher rate which is now in front of you.
So you close the deal and call your lawyeronly to find out... the lender is now out of business. It's time to call Anthony to refinance.
Words to remember the next time that rate seems just too good to be true.
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