#70 Monday Morning Mortgage Tip: Andrew Jallo with Dacotah Bank

Posted by Shane Andersen on Tuesday, January 15th, 2019 at 7:52am.

Every Monday Morning at 8:15am, join me on my Facebook page as I sit down with a local lender, and do a live interview and talk about a Mortgage Tip that may help YOU with your next Real Estate Purchase. 

This morning I sat down with Andrew Jallo from Dacotah Bank. Listen as he explains the importance of comparing rates between lenders.  You can reach Andrew at 605.692.8600 or Andrew.Jallo@dacotahbank.com.  His office is located at 1441 6th St., Brookings SD 57006 or on the web at www.dacotahbank.com.


Transparency between Lenders and the Importance of Comparing Rates


- Hey guys, it's Shane here from the Brookings Home Team, powered by Century 21. 8:15 on the dot, Monday morning. Got this guy right beside me here from Dakota Bank. Gotta think for just a second. But it's our Monday morning Mortgage Tip and Andrew is here to talk to us today about points and stuff like that. I'll let you go to work.

- Thanks Shane. So I wanna talk about discount points and how transparency kind of comes into play when you're comparing rates amongst other lenders to make sure you are really getting the best interest rate. So a lot of times you might be out googling and researching an interest rate and they give you the lowest interest rate they might provide but they're not also explaining and disclosing that fine print at the bottom. That it's actually costing you to buy down that rate. So as an example, what I did was I used a $200,000 loan amount, an 1/8% difference on interest rate is gonna cost you about $15 a month as you go. So a 1/4% will be $30 a month but the thing to keep in mind is creditors can allow you to buy down that rate but it's gonna cost you in a loan V called a discount point. So as an example in this scenario, a 1/4% is gonna cost you 1% discount or $2,000 on a $200,000 loan. So that's $2,000 more you need to bring to closing. And Shane, what I did was I calculated out how much that's gonna cost you over the course of time to recoup that, it's gonna take you five and a 1/2 years through out the loan before you finally break even and then it benefits you. One of the things, I'm a visual person, so what I'm gonna do is I'm gonna type up a visual document that we can attach for comments so you as a consumer who's watching can kind of see that and understand it. But the main thing is just ask for transparency from your lender and compare rates to make sure you truly are getting the best interest rate.

- Read the fine print.

- Yeah exactly.

- Read the fine print. On this example that Andrew had too, is we've got $2,000 takes about five and a 1/2 years to pay that off. Sometimes you're not there that five years so you gotta weight that out too. So take a look at that and like he said we'll post the document that he'll have for you in the comments here. So feel free to look at that. And as always, feel free to reach out to Andrew at any time. He'd be happy to talk to you. His information's on the top, on the bottom, on the sides wherever you guys are able to see that here. Just looking here, I have a Nicole on here, "I'd like to try and speak with someone regarding". There you go.

- Perfect Nicole, we'll reach out to you. Thanks for watchin'. You bet.

- Like I said, his information will be up on the top or on the bottom so or on the sides too, can't forget that. So feel free to reach out to him and he'd be happy to talk to ya. And we will be back again, gee's I can't even talk it's Monday.

- It's the fog.

- It's the fog yeah my brain is fogged too. We'll be back next Monday. Thanks everybody for watching and feel free to share and tag this with anybody else that you feel would be interested as well. So Andrew, thanks again.

- Thanks, Shane.

- You guys have a great week and what's the Super Bowl prediction? Let me know. We'll see you guys later.

Thinking of selling and/or moving to Brookings, Volga, or any surrounding areas? Got questions? I’m here to help! Visit BrookingsHomeTeam.com for more details!

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