Which Loan is REALLY the Best?

By
Real Estate Agent with Homebuyer Representation, Inc. DRE# 5467433

With so many lenders, loan types and loan programs, how can you REALLY know which loan is best?

At Homebuyer Representation, our Exclusive Buyers Agents can assist you in looking at your financing options and possible sources of financing. We are not lenders. Our only goal is that you understand the total cost of each loan, loan type, or loan product or configuration which you are considering.

With this in mind, we created the TOTAL COST OF THE LOAN EVALUATOR®. Our TOTAL COST OF THE LOAN EVALUATOR® allows you to understand what you are really paying for your loan based on the actual dollars you will put into the loan at each phase along the way.

By not focusing on any specific facet of the loans and loan products, the TOTAL COST OF THE LOAN EVALUATOR® lets you clearly see the Total Cost of each loan or loan product after 1, 2, 3, 5, 10, 15, 20 and 30 years. We can also customize it for any other time period you would like us to.

The TOTAL COST OF THE LOAN EVALUATOR® can be used to help determine whether or not paying discount points makes sense. It can be used to find out whether or not that low interest rate is actually saving you any money (you may pay more than the difference in up-front fees or in ongoing mortgage insurance)! It can be used to evaluate the possible benefits of a slightly higher interest rate, but with no mortgage insurance premium (or vice-versa).

Our special TOTAL COST OF THE LOAN EVALUATOR® frees you from the common mistake of relying on any specific facet of the loan when you evaluate which loan or loan product is best for YOU.

Homebuyer Representation, Inc. is a Real Estate Brokerage that services Salt Lake City, Utah and surrounding areas. Agents are Exclusive Buyer Agents (EBAs) and represent BUYERS ONLY. For Free Reports or a Free Consultation, contact Homebuyer Representation at (801) 969-8989 or click the highlighted links in this paragraph.

©2007 Homebuyer Representation, Inc.

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Rainer
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jim bob
job - Los Angeles, CA

*** I think you forgot to mention that you have to estimate where the index will be based off of the current market on any ARM. Which is why APR's don't work and why your estimates will not be all that great after 5 years.

Plus, I think you left out tax benefits and alternative investments in comparing the value of money.

May 08, 2007 12:30 PM #1
Rainmaker
252,643
Benjamin Clark
Homebuyer Representation, Inc. - Salt Lake City, UT
Buyer's Agent - Certified Negotiation Expert

Thanks for the response Chris! That's constructive criticism!

I actually do show them the projected costs of ARMs, both up and/or down if that is an option. Those are, as you mentioned, estimates however, subject to what the market may do. If the client knows they are going to be in the home a short enough period of time, and if the ARM rate is significantly lower than the fixed rate alternatives, the ARM may be the smart way to go!

I don't go so far as to suggest alternative investment vehicles, I'll leave that up to them and their financial planner. I also tell them to run the evaluation by both their accountant and financial planner to determine the other aspects you mention (tax benefits of each option, etc.).

May 08, 2007 12:53 PM #2
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Rainmaker
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Benjamin Clark

Buyer's Agent - Certified Negotiation Expert
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