You might think the most important thing you need when you’re looking for a mortgage is the rate.
Having a few basis points shaved off your mortgage rate isn’t going to make the difference you think it is, according to North East Mortgages President Terry Kilakos. If all you’re looking for is that absolute lowest rate, you’re going to find yourself in trouble.
Kilakos said some mortgage salespeople have only this one tool in their toolbox.
“They’re going to try and undercut everyone, but they’re undercutting people by maybe five basis points, 10 basis points at the most,” he said. “And what that actually translates to is a cup of coffee a month for the majority of people.”
“It’s a negligible type of savings that, in the grand scheme of things, makes no difference in your day to day life,” Kilakos said. “What ends up happening, unfortunately, is people miss out on actually structuring their mortgage correctly.”
Instead of looking for the absolute lowest rate, you should be looking for how your mortgage is put together so you don’t end up with unexpected fees and restrictions. Those surprises can be built into many mortgages that offer the lowest rates, and features you may actually need down the road could be stripped out. For example, mortgages at the lowest possible rate often come with heavy penalties if you decide to sell your house early or try and pay off what you owe early.
At North East Mortgages, things are different, Kilakos said. They look at the whole picture and get the mortgage that’s best structured for your needs—short- and long-term. Plus, they do more than just mortgages.
“We specialize in is creating that dream team for you. We have mortgage brokers, we have real estate brokers, we have life insurance brokers, and we have damage insurance brokers,” Kilakos said. “We put them all together and make sure that we get you the best deal across the board. And by doing that, you end up saving tens of thousands of dollars.”