It happens again and again.  While first time home buyers are searching the Internet, gathering Good Faith Estimates, and comparing the interest rates, they forget to focus on costs.  I just completed our free Good Faith Estimate for a client that was being charged 2 discount points as a first time home buyer.  The only issue was, he would have to consider taking the additional funds from his 401K account; an account he wants to reserve for retirement. 

He called our company, BeechTree Mortgage, Inc., because of our online advertisement of no discont points or origination fees.  I explained that paying discount points should be the option of the consumer.  It’s a trade off.  Paying discount points is simply paying the interest due on a mortgage; upfront.  The recovery periods are usually at least 5 months and liek most first time home buyers, this consumer would rather keep his 401K investments choose if he wants to pay points or not.

Discount points are a consumers option.  I am tired of mortgage brokers charging them upfront as a matter of fact fee.  We need to stop confusing consumers and provide the lowest rate we have avialble for fair consumer internet shopping.

Again, it does pay to talk to a Mortgage Broker Propfessional. 

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