SHOPPING MORTGAGE RATES

BY ANNA & MICHELLE

Nobel Prize recipient, Richard Thaler, in his research into seemingly irrational economic behaviors, “found that consumers generally search too little, get confused while evaluating complex alternatives, and are slow to switch from past choices, even if it costs them.” “Why are consumers leaving money on the table?”

Based on this behavior, a borrower securing a mortgage might depend on their existing banking relationship or a single referral from a friend or agent rather than shopping multiple lenders.

When shopping for a lower mortgage rate, consider that not all lenders share the same business practices. Some may lure unsuspecting borrowers to a rate, knowing full well that they cannot deliver on it. After making a loan application and supplying information necessary for approval, they reveal that the rate is not available for “whatever” reason.

They’re counting on the borrower wanting to get into the home because the closing date is near and they’ll compromise by accepting the higher than quoted rate.

Shopping for a mortgage rate can result in savings because rates are set by individual lenders. To get an apples-to-apples comparison, the terms of the mortgage being shopped should be consistent among the lender candidates.

Consumers can make additional savings by not only shopping for better rates but for better terms and fees, which can vary widely among lenders.

The amount of savings can be affected not only by the difference in rates, but the size of the mortgage and the length of time borrowers expect to keep it without refinancing or selling.

• Advertised rates are generally for A++ borrowers and the determination is the lender’s based on many factors. It may be unlikely those rates are offered to you.

• A recommendation for the best lender from a friend or family member will not necessarily be the best for you.

• I nstead of accepting the first offer received, shop for at least three to five offers.

• Your personal bank may be convenient but it may not offer you the best rate, terms, and fees.

• Ask if there is room to negotiate the rate or fees.

• Ask your real estate professional for recommendations of several trusted lenders for you to shop a rate, terms, and fees.

Just Say No To Lot Tax

I oppose this tax and urge NO VOTE for the following reasons:

• T here is absolutely no need for this tax. In the interest of sound governance in compliance with the rule of law, it must be ended now.

• T he LOT tax is phony economics and foolish taxpayer subsidizing large, for-profit companies, with no benefit. To date over the last decade, the Ketchum taxpaying public has given many millions of dollars to very successful for-profit corporations who have war chests of funding for marketing. Enough is enough.

• Subsidizing rich companies is a bad way to market. The incredible uniqueness of our area markets itself. Discounting and subsidization is counterproductive to market economics and sabotages the premier market position we enjoy. We want visitors and investors who play by the rules and don't expect incentives and subsidies. We must insist on the rule of law and no special accommodations, especially for society’s economic elites.

• Be clear: there is no chance the airlines will pull out of Hailey, Idaho, as certain fearmongers suggest. Also, the notion that we should feel good that the airlines are willing to accept 50% of what we have been giving them over 10 years is ludicrous. Also ludicrous is the notion of taxing to create more funds for so-called “affordable housing” which, as pursued by Ketchum City Council and its seriously illegal entity “KURA,” whose existence is intended to end run Idaho law mandating municipal fiscal responsibility, is fraught with legal error and administrative stumbling. The Ketchum public has learned the hard way that Ketchum city government is ill equipped and way out of its league. Net of all costs, its

JIM HUNGELMANN

affordable housing projects will turn out to be the most expensive housing for workers ever developed anywhere: “No Confidence” is a polite way to put it.

• W hen the prospect of a serious recession looms as it does today, the last thing a sane and responsible society does is create more tax and/or continue ones whose purpose, if there was anything legitimate in the first place, has long disappeared.

• Ketchum city “leaders” are keen to ramp up city government and to create layers upon layers and new staff positions for this and that, for the purpose of embedding their tenancy ad infinitum. This crew is not whom you want to hand millions of dollars to. They have an abysmal track record of project mismanagement, non-responsiveness to public concerns, and lack of transparency.

• Last year's mayoral election was telling. This administration is on borrowed time, on its last leg, and soon to be sent packing.

• T he question must be asked, what could have been accomplished with the many millions we handed over? And, how many times do we need to say no? The city put an initiative to increase LOTs charged in Ketchum before voters last May, but the measure was resoundingly defeated. But low and behold, that doesn’t stop them from asking for more, again.

Just Say No to stumbled government taxation and market intermeddling. VOTE NO on May 16.

Thank you.

Jim Hungelmann Ketchum