|
| |
1.
What Are Interest Rates?
The rate you get is based on many factors, most of
which are determined by you and what you want.
 |
How is your credit?
The better
you have handled debt in the past, the better rate you can get now. See FAQ
2-"What's a FICO Score?". |
|
What amount do you wish to
borrow? Many lenders charge extra for small
loans (under $100,000, for example); rates on loans over $322,700 are considered Jumbo loans,
with higher rates than "Conforming Loans"; |
|
What percent of the home's value are you
borrowing? The closer to 100%, whether a purchase or
refinance, the higher the interest rate the lender will want to charge.
(It's all about the more risk, the higher cost in the form of higher
interest rate.) |
|
For how long do you want the
loan? The less time you ask the lender to provide
you with a fixed rate (30, 25, 20, 15, 7, 5, 3, 2, or 1 years, or even as
short as 6, 3, or 1 month), the lower the interest rate they will charge.
(Risk vs. cost, again) |
|
How much proof/documentation are you willing
to provide to the lender? Guess what, the less you
want to show, the higher the rate! Don't be discouraged, though, as lenders
now offer almost-market rate loans, IF YOU HAVE GOOD CREDIT, even if you
don't want to prove how much you make, how long you've been working, AND/OR
what assets you have! It's a great country! |
| Will you be better off in the long run if
you pay a Point (Origination Point, Discount Point--whatever you call it!)? It depends. There are
circumstances where it will be better for YOU if you pay a Point and others
where we will recommend you don't. If you know you are going to be in the
home for a relatively short time or know you will be refinancing soon, you will be better off not
paying, and vice versa. |
| Should you take the lowest rate all the
time? There really are circumstances where it makes more sense for you to pay a HIGHER interest rate. For example, having
one of our clients pay an extra .25% allowed us to pay $1,200 of their
Closing Costs, but it only cost them an extra $10/month. That means it would
be 10 YEARS before the LOWER rate made sense. Are you going to be in your
home for 10 years or, more importantly, will you have the loan for 10
years?! If not, the HIGHER rate is a great deal for you!! |
Our point is, no one who quotes you an interest
rate without first finding out your SPECIFIC situation will be able to stand
behind that rate. When you work with us, you know you will get what you are
promised, because we take the time to get to know you AND our business is built
on referrals from satisfied customers.
A couple of other things to keep in mind:
|
Even with us, if you call today to discuss
your situation but don't tell us to lock in a rate, that rate may not be
available tomorrow (or even later today if the bond market is volatile). |
|
DON'T USE THE INTERNET--We can't tell you how
many times we have talked to people who thought they were getting a great
deal only to find out that the rate is higher and, oh yeah, "they
failed to tell me about the $3,000 transaction fee." Even if you don't
use us (for some strange reason), get a referral to someone you can meet
face-to-face, just in case things don't go as promised. |
We are very, very proud
of our level of service. Once you have used us and compared us to most others
out there, our clients tell us you will want to refer your family, friends, colleagues and so
on. Finally, chances are you have been referred
to us if you’re reading this, as we do not advertise this website. We would
like to earn your business and promise you a fair deal, at a great rate, with
great service!
|
