Comparing Mortgage Incentives & Discounts

Better Mortgage Rates - Getting The Best Deal
As the premier national mortgage team, there are two things that our Mortgage Consultants constantly hear about our service – how low our mortgage rates are and how easy the mortgage process is when dealing with a knowledgeable professional.  With so many lenders now competing for your mortgage business, it is increasingly difficult to know what is best for you.  That’s why INVIS Mortgage Consultants are there – to ensure that you get what you deserve, the best rates and the best products given your personal situation.

Lenders offer all different rates and different incentives.  There is the cash back incentive, line of credit, coverage of different costs associated with a real estate transaction and so forth.  It’s a lot of shopping that you don’t want to do, don’t have the time to do, and quite frankly, can’t do to the same extent as a professional.

Let’s take a look at an example to show a comparison of what different incentives mean.  Your current mortgage is $100,000 and you have three competing offers to evaluate:

• ¾% off the current posted rate (8%)
  
• 1.5% cash back off the mortgage amount.
  
• ¼% of the current posted rate (8%) and $800 towards associated fees with closing the mortgage transaction.

Present value of ¾% off of the posted rate of 8% - the savings in the mortgage payments and reduced balance at term end.	$1,895
Cash back of 1.5%	$1,500
Present value of ¼% off of the posted rate of 8% plus $800	$1,432

Obviously, from a purely financial perspective, ¾% off of the posted rate is the best scenario.  However, consider that you may need to purchase some goods for your home, the cash back would be considered the best scenario or the blend depending on what you require.

As stated above, understanding the incentives and your personal situation will dictate what is the best-case scenario for each person.  An INVIS Mortgage Consultant can help you through this whole process.