What is really in a rate selection??Most people feel the lower the rate, the better deal I received! The truth is that selecting an Interest Rate should be an "Economical Decision and NOT an Emotional Decision" When determining an interest rate for your loan you should consider some compensating factors such as: How long will I keep this loan? This question alone should change your thought process about the rate selection for your loan. The truth is that the lower rate may not always be the best and most economical decision for you! For example, suppose a borrower could get a $400,000 loan at 6.50% with no origination fee or discount points. The payment would be $2528.27. Instead, however, the borrower chooses an alternative rate - 6.25% - and pays a 1% discount point for a total of $40...
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