If you’re purchasing a home or property in New Mexico, or your are refinancing your current home loan, you already know that interest rates are the lowest in history. This is a great time for homeowners and new home buyers to lock in these low mortgage rates, and save thousands of dollars in interest over the life of their loan.

At Indigo Mortgage, we are sadly seeing some big national and internet lenders take advantage of borrowers looking for low interest rates. These large lenders count on borrowers to be swayed by the low interest rate, and not compare the costs on top of that rate. We are seeing many lenders charge borrowers huge fees to get that low interest rate.

We always tell borrowers to “shop their loan” by getting estimates from at least two lenders. If both lenders offer the same low rate or if one has a lower rate than the other, it’s vital to compare what it will cost to get that rate.

Borrowers should look at the fees identified as Origination, Discount, Admin, Underwriting, and Application fees. These fees are where the lender makes their profit, and some will be higher than others in what it costs the borrower to “buy down” the interest rate.

You’ll also see title fees and escrow fees on your documentation, but these fees will be exactly the same with all lenders. The only fees a lender has control over are the Origination, Discount, Admin, Underwriting, and Application fees.

As you’re applying for a mortgage loan, be sure to ask the potential lenders “What is it costing me to get that rate?”. The lowest rate is not always the best deal for the borrower if it’s costing many thousands of dollars up front to buy it down.

At Indigo Mortgage, we are always transparent on what our fees are and we will even help the borrowers evaluate other offers after we’ve submitted ours. Call us for low interest rates and low fees on your New Mexico mortgage.

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