[Insert Sensational Headline] re: Housing Market Misinformation
E5 Home Loans
E5 Home Loans AZ
Published on July 19, 2022

[Insert Sensational Headline] re: Housing Market Misinformation

The Real Headline is “Read More” to Arm Yourself with Accurate Information

Misinformation riddles our society every day. We live in a world of soundbits and clips incentivizing the public to barely scratch the surface level of understanding issues. News outlets write many headlines and even some entire stories to communicate drama rather than impartial facts.

Last week was no exception with this article by Thomas Yeung, CFA, InvestorPlace Markets Analyst
HEADLINE: “Will the Housing Market Crash in 2022?”
This is all most people will read. Meanwhile, the subheadline provides the real storyline…“It’s likely that we’ll see a slow deflation of housing prices”  This is a more responsible lead. However, that benign subheadline doesn’t incite emotion or clicks (the emotion being fear) and tempt the reader to inquire further.

It’s the problem with modern news reporting. I implore everyone to read more. Don’t just glance at a headline. Read the article. Then check anything cited that doesn’t add up or smells of hyperbole. The information is out there. Be open to searching for it, because you will be better for it.

Borrowers getting a mortgage, especially homebuyers, need a 2nd opinion 

According to a survey by the Consumer Financial Protection Bureau (CFPB*), the government watchdog for consumers and a reliable source, Nearly Half of Borrowers Do Not Shop for a Mortgage. This is old news from 2015, but still holds true.

Buying a home is most often the single largest purchase anyone makes in their life. There is a true cost for borrowers to get a mortgage in the form of the interest rate and lender fees. Why half of buyers WOULD shop for the home, and WOULD NOT shop the mortgage is troubling. That first mortgage quote is the headline. Borrowers should “read more,” and get a second opinion.

“Get quotes from multiple lenders.” -Freddie Mac®

In a recent 2022 article by Freddie Mac (a 2nd reliable source**), the #1 tip in getting a mortgage is “Get quotes from multiple lenders.”  They go on to state, “Shopping around for a mortgage could save you hundreds or thousands of dollars. Our research showed that getting just one additional rate quote could save homebuyers an average of $1,500 over the life of the loan, and getting five more quotes saved an average of about $3,000.”

E5 Home Loans repeatedly sees borrowers save thousands of dollars by letting us shop their mortgage. Most recently, we saved a borrower $10,000 from using a very popular online lender. Those savings come in the form of a lower interest rate, but also by not charging any crazy lender fees. Other mortgage banks often charge thousands in origination and processing fees, or by charging points to buy down the interest rate from an already inflated rate.

If you’re interested in buying or refinancing your home, contact E5 Home Loans and one of our Loan Originators can help guide you through the process of understanding rates and fees associated with mortgage quotes.  Plus, E5 Home Loans shops for the best products across many lenders and we don’t charge a bunch of crazy fees.

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*The Consumer Financial Protection Bureau (CFPB) is part of the United States government that protects consumers from unfair, deceptive, or abusive practices and take action against companies that break the law.

**Congress chartered Freddie Mac in 1970 to support the U.S. housing finance system and to help ensure a reliable and affordable supply of mortgage funds across the country.