I've checked with four lenders. Three of them are all offering 6.375, and one is offering 5.875. We showed the low offer to one of the other lenders who said that rate is a joke.
Given that the other closing costs are not significantly higher. Is this low rate a red flag for any other potential issues with the loan? Because it seems too obvious to go with the lowest, like there must be a catch.
Potential Concerns about Lower Mortgage Rate
byu/Cyber-Peacock inRealEstate
Posted by Cyber-Peacock
3 Comments
No reason to go with higher rate just make sure you are checking all the details
Is it an ARM (adjustable rate mortgage)?
Are the terms on par with the other two offers you received? Same number of years and are there any other front loaded or back loaded fees that they’re not including in the rate? Are there prepayment penalties?
There is probably some reason why it’s quite a bit lower than the other two quotes.
Compare the APRs. That levels the playing field and accounts for points paid and fees. Really as simple as comparing the APRs