EquityMax often educates our investors to make sure that they consider ALL loan costs when deciding which financing option is the best. While some lenders may charge the lowest rate, or charge the lowest loan origination fee (i.e. “points”), beware of other costs they may not initially mention when quoting you. Questions you should be asking your financing source are:
- Is there a prepayment penalty?
- What is your processing/underwriting fee, if applicable?
- What is the mortgage doc prep fee charged by your attorney?
- What insurance coverage requirements and term length do you require?
- Do you require an appraisal? If so, how much?
Over the years, we have found that even if a competing lender quotes a lower rate than us, they often times hide fees that may make their loans more expensive than an EquityMax loan. For instance, they may require Windstorm insurance, charge a prepayment penalty, or their attorney charges an exorbitant fee to prepare the mortgage docs. At EquityMax, we have the least onerous insurance requirements among our competitors, do not charge a prepayment penalty, and only require modest and reasonable fees to process your loan and have our attorney prepare your mortgage docs.