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Home buyers who don\u2019t gather more than one quote when shopping for a mortgage<\/a> may be losing out on some savings to their monthly payments.<\/p>\n Read more<\/strong>: Consumers Turn to Non-Banks for Mortgages<\/span><\/p>\n<\/blockquote>\n Lenders<\/a> can offer<\/a> a wide dispersion of rates, up to 50 basis points or 0.5 percent, after controlling for factors like the borrower\u2019s down payment and credit score. That could be the difference between a 3.5 percent versus a 4 percent mortgage rate, according to a recent study by two economists at the Consumer Financial Protection Bureau, who culled mortgage data from 2014.<\/p>\n The authors offer up a scenario of what would happen if consumers had done an additional search for rate offers. Just one extra search could potentially reduce a borrower\u2019s monthly payment by $8.63, on average. Adding five more searches could help them reduce their payments by $17.03 per month (that\u2019s about $204 over just one year in savings). That said, the borrower\u2019s initial offer may end up being the strongest in some cases, despite additional searches, the authors also note.<\/p>\n But in general, the researchers say that borrowers\u2019 shopping around forces lenders to compete and likely will reduce the costs the borrower will end up paying.<\/p>\n \u201cTell your clients, especially first-time buyers, to shop more,\u201d notes the National Association of REALTORS\u00ae Economists\u2019 Outlook blog, interpreting the study\u2019s results. \u201cIt may save them money. They should use websites that quote multiple lenders and get multiple offers on their own from large retail lenders, smaller banks or credit unions, and mortgage banks. But always consider the total cost, which includes the lenders\u2019 fees and other services.\u201d<\/p>\n Source: \u201cSometimes, Shopping Will Save Your Clients Money!\u201d National Association of REALTORS\u00ae Economists\u2019 Outlook blog (April 25, 2017)<\/em><\/p>\n<\/div>\n<\/div>\n [ad_2]\n
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