Mortgage Discount from Partner Banks

There’s no reason not to accept your bank’s mortgage offer, but you should shop around first, says Greg McBride, CFA, Bankrate chief financial analyst. “There isn’t a one-size-fits-all answer, but the best way to find out is to undertake the same comparison-shopping process you otherwise would, and the cream will rise to the top,” McBride says.

After all, a quarter-point discount off a rate that is half a point higher than you can find elsewhere doesn’t do you much good. “But getting a quarter-point discount or a break on closing costs with an otherwise competitive rate definitely tips the scales in that direction,” McBride says.

In some cases, shopping around can lead your bank to offer you a better deal. Andrews says he recently worked with a borrower who had asked his credit union for a lower rate on a mortgage. The credit union didn’t respond until it realized the borrower had enlisted Andrews to shop for a new loan.

Mortgage Assistance Programs