The One Area Where Your Lender Shouldn’t Be Providing a Low Rate: Service
For many, the new year might mean it’s soon time to renew an existing mortgage. And even though interest rates continue to hover at remarkably low levels, there are still instances where a lender’s version of its ‘best‘ interest rate is a far-cry from the truth.
Take the face-rate of what any given financial institution is offering for a particular mortgage product. Then peel away the layers of the onion (so to speak) and often times that face-rate is significantly different than the actual best rate that can be obtained – especially on a renewal.
So when I came across this online article, it reminded me about the need to be aware of whether or not your best interests are truly being served by your lender…
Some great tips and basic insights in this article, worth noting:
1) Don’t be so quick to ‘bite’ on the rate ‘carrot’ that some lenders offer in their renewal letters. In fact, continue to do your homework, check out what they’re also offering online, or at their branch (if possible) and simply cut to the chase. Ask them to provide you with, “their very best terms up front, with no games.”
2) Knowledge is power. More and more of us now use online websites, blog sites, social media, etc to access current information on rates, products, and to compare and shop around. This is profoundly effective when it comes to assessing whether your lender actually has your best interests in mind. If they do – they should be more than willing to compete with the best rates you can find out there. Period.
3) Don’t be afraid to use a mortgage specialist to help you find the best rate. Remember – it’s their job to shop around for the best rate and product to meet your needs. And by doing so, they can also often provide a more personal level of service, because they’re usually more accessible and less biased when it comes to the competition.
Of course, the final decision is up to you. And surely there are some traditional lenders which do an excellent job of giving their customers the best rate, terms and service possible (depending on who you talk to). But I’ve also heard from countless consumers who admit they’re downright angry when, for instance, after 20 years of being with the same bank or financial institution – their calls are ignored, communication is terrible, and they realize they actually weren’t given the best rate, like they were told they got.
Something to chew on, the next time your lender tries to get you to ‘bite’ on their supposed best rate.
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