So here’s a little cautionary tale for anyone about to get a home loan.
I’ve been with my bank for 12 years, figured they’d hook me up, right? Nope.
They offered me 6.25% on a mortgage, and at first I thought, “Eh, that doesn’t sound awful.”
But before signing, I did a little digging, checked out diff sites and chatted with a broker.
Turns out, I could get 5.85% from another lender. That’s just a 0.40% difference, but on $600k over 30 years? That’s more than $1,600 a year.. or close to $50k over the life of the loan, just for sticking with my “trusted” bank.
Their “best offer” was just the standard retail rate. Made me realize banks are just businesses, not your buddies. Anyone else did the numbers and found out their bank was low-key ripping them off? How much did you save by switching?
How bank loyalty almost cost me $50k (and the math to prove it)
byu/Tosh97 inRealEstate
Posted by Tosh97
4 Comments
I guess better late than never to know any big business is a big business. There is no friendship or loyalty. You are a paying customer or you arent. End of Story.
Also remember ask if other bank can provide better rate if you move enough assets to them.
You should also look into what the upfront costs are between the two lenders. I’ve seen some that were as much as $30,000 higher just from the fees they were charging.
They will also immediately sell your loan so who knows who you have to actually deal with in 2 months.