Years ago when homebuyers needed money the decision process was very simple–they went to the bank and got a mortgage – much like getting a car loan.

Today, however, many more options are available to borrowers. Borrowers who desire simplicity above all else can choose a lender with leading-edge technology and select a simple loan, eliminating the need for an extended decision-making process. Most borrowers, however, are willing to spend a little extra time and effort to ensure they find the best “deal.”

Unfortunately, many borrowers assume the best “deal” is the lowest rate. While rate is important, it’s one of many variables that should be carefully considered. Other factors can be far more costly (or provide far more savings) than a minor variance in rate.

For example, selecting a fixed rate when a balloon or an adjustable rate mortgage is warranted can be a very expensive mistake. (See Loan Program Options.)

Choosing the wrong rate within the range of available rates can also be costly. (See What’s the Best Rate for Me?)

Other expensive mistakes include:

• Paying mortgage insurance instead of selecting a more attractive alternative (See All About Mortgage Insurance)
   

• Selecting the wrong type or category of loan (See Different Loan Types)
   

• Selecting a rate based exclusively on the quoted Annual Percentage Rate (APR) (See Understanding APR)
   

• Locking a rate prematurely, or not locking a rate when appropriate

Succinctly stated, the best value is the lowest overall cost. A seemingly endless number of variables affect the bottom line, and it’s easy to overlook a “great” option in favor of a “good” option. Limited options and a lack of current information typically result in higher overall costs. What you don’t know can be expensive. Be sure you insist on a quality lender with a competent, informed Loan Officer that provides you with the information and assistance necessary to arrive at the best decision. At Main Street Home Mortgage, we pride ourselves on providing you with both.