Zillow ® Mortgage Marketplace Introduces “True Cost” Feature
Real estate web site Zillow.com® has introduced "True Cost", a new comparison feature within Zillow Mortgage Marketplace that allows borrowers to shop anonymously across multiple loan programs, compare custom quotes and find the most affordable home loan for them. The True Cost feature calculates up front how much a borrower will pay in interest and fees over the time period they plan to live in the home. Borrowers can then compare the True Cost across all custom loan quotes they receive from lenders to determine the best loan for them.
Zillow Mortgage Marketplace is the only mortgage shopping service that enables consumers to submit loan requests anonymously and receive unlimited custom quotes from a network of thousands of confirmed lenders. On average, consumers receive 15 custom, accurate quotes to compare. Since lenders are required to disclose all upfront fees, borrowers are able to compare loan quotes on a true apples-to-apples basis. The Quotes Received shopping tool enables borrowers to sort and filter out quotes with payments and fees they can’t afford. Lender reviews and ratings help borrowers decide what lender to contact.
“Truly shopping for a loan and comparing terms and costs on an apples-to-apples basis is excruciatingly difficult for the average consumer to do. This is why so many consumers find themselves in loans they don’t understand,” said Lloyd Frink, Zillow president. “We launched Zillow Mortgage Marketplace to change this, and to put the consumer first, by requiring lenders to break out all fees in a standard form, so consumers can compare custom loan quotes side-by-side. With True Cost, we’ve taken this comparison shopping a step further, and calculate for consumers not just what they’re paying up front or every month, but the true cost over the timeframe they plan to live in a house. This level of transparency has never before been available in mortgage shopping, online or off.”
Borrowers can view the True Cost over different time periods by adjusting the time-in-home dropdown menu. For example, a borrower can see how much they will pay in total interest and fees for various loan quotes over a five, 10 or 20-year period. In addition to the True Cost calculation, Zillow also displays the principal as an additional number to consider, because principal will grow at varying rates depending on loan program. This unprecedented transparency in mortgage shopping is important, since the ideal loan program and fee/rate structure can change depending on how long a borrower plans to own a home.
Zillow Mortgage Marketplace radically transforms the process of obtaining a mortgage and finding the best rates by adding transparency and competition that hasn’t before existed in the mortgage industry. Borrowers can shop for loans anonymously and get an unlimited number of accurate, customized rates directly from thousands of competing lenders within this open and free marketplace.
Borrowers submitted more than 47,000 loan requests on Zillow Mortgage Marketplace in June 2009, and lenders responded with over 734,000 custom, accurate loan quotes. On average, each consumer loan request receives 15 loan quotes from lenders, with the first quote appearing within seconds. To visit Zillow Mortgage Marketplace, click the “mortgages” tab on Zillow.com, or visit www.zillow.com/mortgage.
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