To fee or not to fee that is the question. Okay, I may be plagiarizing Shakespeare a bit, but you get the point. Should you pay fees or not pay fees? This is a big challenge to deal with especially in the mortgage business.
Ok, just kidding! This isn’t a big challenge. Everyone charges fees in some way or another. Some charge them up front and some charge them in the rate they give you. Neither of these are bad or good. It’s dependent on how long you plan to be in your home.
Example: Client A is planning on living in their home for 10 years and Client B is planning on living in there home for 2 years. Client A will typically want a lower rate with higher fees as they will save over the long term and Client B needs a lower fee and higher rate as they won’t be in the property long enough to recoup the up front cost through a lower rate.
Fees are not one size fits all they are specific to the persons unique situation. Even more important than that… if you are focused so heavy on the fees there is a good chance you aren’t focused on the big picture which is buying the right home and using the right product to do so. If the only value a company has is to pretend like they charge nothing then they don’t have value. It’s the intentional and honest guidance to help your end result while taking which way you want to pay your fee into account that truly matters.
Now go make good healthy purchase decisions and pay the fee, you’ll find that it’s worth it!