When it comes to financing your new home or even working to renew your existing mortgage, who can you trust? When it comes to your mortgage renewal, there is a stat out there that suggests 80% – 87% of home owners with mortgages simply sign their renewal document without shopping around. Your bank knows this and prey upon this very fact. Let me share a story.
22 months ago a customer of one of the big banks called me because she wanted to switch up her mortgage, rid herself of the 5.2% she currently had and take advantage of lower rates. Makes sense right? The following day she walks into her bank to inquire about her insurance, a totally unrelated matter. The bank rep noticed the client has a mortgage coming due for renewal in a few months.
Long story short, the client signs a renewal document at 5.12% for another 5 year term and the bank rep told her she should be lucky she received a rate that low rate. When the client called to tell me this, I shared with her that I could have gotten her the same product with the same big bank at 3.89%. This bad advice cost this consumer $16,257 in unnecessary interest costs.
Let’s be honest, the banks are in business to make money, first and foremost! So why would they offer you rock bottom pricing and take away from their Billion dollar profits? Sad but true. It’s never a bad idea to bet a second opinion.
Before I go let me ask, what could you do with an extra $16,257?
Give us a call to get a proactive plan working for you.
Debt Consolidation E-Book
