Is $800 a lot of money to you? What does $800 mean to you?
Let me back track. As many of you know, I am in the process of obtaining a mortgage for a new home. I have asked the builder's lender to match a deal I was given elsewhere as his initial quote was in left field.
He came back and said, "I matched the rate that you were receiving from your broker. My fees were less than $800 higher. I am not seeing how we are not being competitive."
Well, as you can imagine, that didn't go over too well with me. Here is part of my response:
"You only matched the rate because I sent you 2 outside GFE's, but matching a rate means nothing when you're not matching the costs to obtain the rate.
... $800 is one month of daycare for my daughter. $800 is 20 months of a swim membership in Austin. $800 is a 12 YEAR swim membership at a local rec center in Dallas. $800 is 4 months worth of electric bills, on average. $800 is 473 gallons of gas which means I could fill my tank up 21 times. That's a lot of back and forth to visiting my family in Dallas once we move to Austin. $800 is the amount of all your "lender" fees combined, except the application fee.
How is $800 not that much? In my book, $800 gets a lot of things paid for day to day. It might not be that much to you, but we're responsible people who research where we spend our money, and not one of those people that just signs the bottom line because we're told to, without reading what is being put in front of us. We're those people that you don't see on the local news being foreclosed on because they signed paperwork for a loan they can't afford. $800 is a lot of money!"
Put into perspective, is $800 a lot of money to you? How would you spend $800? $800 is also 5 months worth of groceries!! That's almost half the year!!
As I said in my response to the lender, just because you match a rate, it makes no difference if you're not going to match the fees behind that rate.