Half of Borrowers Throw Away Money on Their Mortgage
According to a recent report released by the Consumer Financial Protection Bureau (CFPB), a government agency focused on consumer financial matters, almost half (47%) of all mortgage borrowers do not compare lenders when they select a mortgage. At FREEandCLEAR, we believe that one of the best ways to save money on your mortgage is to gather and compare mortgage proposals from multiple lenders and select the one that is right for you. By not shopping for your mortgage, borrowers can end up paying thousands of dollars more in higher interest expense or closing costs. According to the same CFPB report, 75% of borrowers apply for a mortgage with only one lender or mortgage broker instead of submitting applications with multiple lenders to determine which one offers the most attractive terms.
When getting a mortgage, borrowers typically rely on existing relationships such as the bank where they have their savings accounts, a friend who is a lender or a real estate agent but it is important to understand that you have lender options when you get a mortgage. You should treat the mortgage process like you would any other major purchase, such as buying a car — shop around, compare mortgage proposals from multiple lenders and negotiate the best terms for your mortgage.
Most borrowers cite a lack of time or confusion about the mortgage process as reasons why they do not compare multiple mortgage proposals but negotiating a lower interest rate or closing costs can save you thousands of dollars. Additionally, we understand the mortgage process can be confusing and overwhelming so put FREEandCLEAR’s tools, resources and information to work for you to help you understand the process and make it more manageable. We offer a detailed explanation of How to Compare and Select a Mortgage and our INTEREST RATES feature allows you to compare interest rates and fees for multiple lenders in your area.
You can review the full CFPB Consumer Mortgage report and check back with the FREEandCLEAR Mortgage Expert Blog frequently for the latest insights and developments on the mortgage market.
The FREEandCLEAR Mortgage Expert
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