Shop Around for a Morgage, or Risk Paying a Huge Price

Buying a new TV? Chances are you’re going to scour customer reviews, compare prices across multiple sites and tack on whatever discounts you can find.

Buying a new house? It’s much more likely that you’ll go with the first offer you find.

Almost half of consumers don’t shop around, or only seriously consider one lender, before they apply for a mortgage, according to a report released by the Consumer Financial Protection Bureau this week.

That laziness is costly – about the same as turning down a check worth thousands of dollars.

Borrowers with good credit scores can see interest rates for a mortgage vary by more than half a percentage point.

On a 30-year fixed-rate loan worth $200,000, someone with a 4.5 percent rate would pay $60 more a month, or $3,600 over five years, than someone with a 4 percent rate.

Even a difference of 0.25 percentage points on a similar loan could add up to an additional $10,000 in interest charges over 30 years, estimates Keith Gumbinger, vice president of HSH.com, a mortgage information website. “That’s $10,000 more toward your retirement,” Gumbinger says. “That fills the gas tank a lot over the years, too.”

read more at: http://www.delawareonline.com/story/money/business/2015/01/16/shop-around-mortgage-risk-paying-huge-price/21874169/

Disclaimer: for information and entertainment purposes only

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