New tool aims to eliminate pricing gamesmanship when comparing loan options
The process of deciding whether to refinance a mortgage in order to lower costs involves four steps:
- Step one: Select the preferred type of new mortgage.
- Step two: Find the best available price on that mortgage.
- Step three: Determine whether the cost of the new mortgage will be lower than the cost of retaining the current mortgage.
- Step four: Find a way to prevent being overcharged after committing to the transaction.
Because borrowers navigating these steps must access multiple sources of information, many of which are unreliable if not biased, it is hardly surprising that many bad decisions are made.