Your Home Mortgage, Are making the best decision?

As a Loan officer and practicing Realtor here in San Diego CA, I get a lot of clients both Veteran and civilian that run into the same problems when trying to make the best decision on refinancing their home. The same questions also apply to those who are purchasing a home and need financing.
Most people who begin the journey of shopping for a home loan focus on thing and one thing only, INTEREST RATE, more specifically the lowest interest rate. Don't get me wrong, a low interest rate is a good thing, but its only half the story. Advertising, whether a mailer, a billboard, a website banner or a posted interest rate on Lending tree, will almost always display the lowest interest Rate. Why? because they know that a vast majority of people will focus on interest rate first and many times will solely base their decision on who quotes them the lowest rate. Please don’t fall for this trap! So many times I talk to clients who, in the past, paid 1-2 points for a lower interest rate when they knew they would be refinancing or moving in the near future.
I take a different approach with my clients place as much emphasis on closing costs as I do interest rates. Understanding the relationship between these two is critical to making a good decision. There are many questions to ask to properly plan your mortgage and I would argue that a trusted mortgage adviser with many years of experience is far more valuable and efficient than trying to navigate the ocean of mortgage options and advertising yourself. There are many things to consider when faced with your mortgage decision.
• Closing costs, fees, prepaids
• Interest rates and APR
•Does it make sense to refi if you’ve been paying on a mortgage for a few years
•How to compare amortization tables – best tool for deciding on rate & term/close cost scenario
•I want to aggressively pay down my mortgage, is a 15 year fixed good for me?
• Are their points being charged?
• and many more....
For our Veterans that are considering or have a VA loan, many of these concepts apply to you as well. I want to start a discussion with your questions and help you make the best decision for you and your family. Everyone has a different story. There is no “one size fits all”. A good mortgage planner/consultant can save you thousands.