ChatGPT, the new artificial intelligence (AI) large language model tool that can draw from the entire internet to write just about anything, is all the rage these days, not only as a communication tool but as a way to improve personal finances. ChatGPT can even potentially be used to help you save money on your mortgage, according to experts in real estate and AI.
Here are several ways you can save money on your mortgage with ChatGPT.
For anyone who has access to a computer with internet, you already have “a readily accessible platform for users to seek information and advice on mortgage-related topics, eliminating the need for extensive research or consultation fees,” according to Troy Robillard, a realtor with Premiere Plus Realty in Florida.
ChatGPT is especially good at aggregating and synthesizing information from a wide range of sources, he said, including real estate websites, financial institutions, government databases, and relevant research papers. “This allows it to provide comprehensive insights on mortgage rates, terms, refinancing options, and potential savings.”
ChatGPT can also get to know a user’s individual preferences and offer tailored suggestions to help homeowners find the most suitable mortgage options and potentially save money. “It can consider factors such as credit score, income, down payment, loan term, interest rate, and refinancing opportunities,” Robillard said.
Comparing Mortgage Offers
ChatGPT can also analyze and compare different mortgage offers from various lenders, taking into account interest rates, closing costs, and loan terms. “This can help users identify the most affordable and advantageous options, potentially leading to long-term savings,” said Robillard.
Budgeting and Financial Planning
ChatGPT can pull from existing wisdom to provide guidance on budgeting strategies to help homeowners manage their finances effectively and save money, Robillard explained. “It can suggest ways to reduce expenses, increase savings, and optimize debt repayment to facilitate mortgage affordability.”
Interest Rate Comparisons
Because ChatGPT is so adept at aggregating information quickly, it can also help you research and compare interest rates from different lenders, according to Thoriq Noor, a technology blogger on his own website. “By providing a summary of current rates, it can help you identify potential opportunities for refinancing to a lower rate,” he said.
Though ChatGPT is primarily an AI tool focused on language and language patterns, it can assist with calculating mortgage payments under different scenarios, Noor said. “For example, it can show you how much you could save over the life of your loan by making extra payments or switching to a bi-weekly payment schedule.” These calculations would be generic, and not personalized to you, but would give you an idea of what to expect based on a certain loan amount.
Understanding Mortgage Terms
The language of real estate can be dense and confusing and mortgages can be complex, with many different terms and options, Noor said. “ChatGPT can provide explanations of these terms and help you understand the implications of different mortgage options.”
Researching Government Programs
Another way to put ChaptGPT to work is to help users research the many government programs designed to help homeowners save money on their mortgages. ChatGPT can also pull up eligibility criteria to see if you might be able to take advantage of one of these programs, Noor said.
Writing Letters to Lenders
At various stages in the process, you or your realtor might need to communicate with your lender about your mortgage, Noor said. “ChatGPT can help you draft letters or emails. This can be particularly helpful if you’re requesting a modification to your loan terms.”
Downsides of ChatGPT for Mortgage Savings
Despite all of its great uses, keep in mind that ChatGPT is not a perfect tool. “While ChatGPT can comprehend and respond to a wide range of questions, it may occasionally lack contextual understanding or fail to grasp nuanced aspects of a homeowner’s situation,” Robillard said.
It also won’t have access to real-time data on mortgage rates, housing market conditions, and lender policies frequently change, he explained, “So it’s important to verify information from reliable sources or consult a mortgage professional for the most up-to-date and accurate details.”
ChatGPT can be a great assistant, but ultimately, Robillard said, “It’s crucial for homeowners to consult local experts or legal professionals for specific advice.”
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