Are you tired of getting the run-around
by dozens of different mortgage lenders trying
to tell you that they've got the best deal?
What is the best deal? Really.
The key to finding the answer to that question is to be informed and to understand that what's the "best deal" for one person may not be the "best deal" for you. That's why Mortgage Professionals of America created this quick guide to answer your questions, and to get you informed. So, here it is....real answers, real quick.
Please don't hesitate to contact us anytime while reading through this. You can also use our simple form to ask a question about anything. Just click here.
"Real answers, real quick."
Why does a loan officer ask you what you are ultimately trying to accomplish? (If they don't, turn and run!)
Most mortgage companies can put together a custom solution for so that question simply gives them a guide. However, a great mortgage loan officer will also suggest ideas to not only accomplish your goals, but give you more ideas about what's going on in the industry that might even get you something you didn't know existed.
Why is my credit so important?
Your credit report is simply a universal way for someone who'll lend you money to gauge their risk on that investment.
|
Just keep in mind that the only way you can have great credit is if you have paid your bills on time and you don't have concerning outside circumstances like too many credit cards, or too high of a balance on existing credit cards. A lending institution feels more at ease if you have a good history and will in turn offer you more options, better rates, and consequently lower payments.
As a sample, you may see rate and payment changes based on your score similar to this.
(FOR EXAMPLE ONLY : THESE ARE NOT REAL RATES.)
| Your Score | Interest Rate | Monthly Payment |
| 720-850 | 5.76% | $876 |
| 700-719 | 5.89% | $888 |
| 675-699 | 6.42% | $941 |
| 620-674 | 7.57% | $1,056 |
| 560-619 | 8.53% | $1,157 |
| 500-559 | 9.29% | $1,238 |
Anything broken can be fixed. Some things are just easier to fix than others.
Repairing your credit can be easy but it rarely happens overnight, and almost always requires a change in the life style that created the bad credit in the first place.
The best place to start is by obtaining a copy of your credit report and trying to remove anything that isn't right. Of course we can obtain one for you for a very low fee if you want it just for information. If you are considering a mortgage with us, we'll not only obtain your report for free, we'll glad walk through it with you to make sure you understand what is on your credit report.
Typically, the three credit reporting agencies (Experian, TransUnion, Equifax) require some type of written letter in the form of an inquiry from you for them to really look at anything that might be erroneous. Yes, as you can imagine, this can be a very slow process.
From there, paying your bills on time (with absolutely no late payments!), not racking up credit card debt, consolidating your trade lines, etc. will get you back on the road to good credit. Again, even with these changes made, your credit won't change over night. It can take several months before you see much of a change.
Programs are the definitions of types of loan scenarios that a particular lender offers.
Every lender a broker uses creates their own set of criteria for lending out their money. Most lenders will have variations of the most common programs (see the quick chart and details below). They will also have niche programs that they feel make them unique.
Quick Guide:
|
|
Your mortgage rate is perhaps the most important of all interest rates on loans and other debts. Because your home is probably the most expensive thing you will ever purchase; it stands to reason that your mortgage is the largest debt you will ever carry.
The interest rate that you have to pay on your mortgage loan will not
only effect the size of your monthly payments, but will also have a big
effect on the total money that is spent over the life of the mortgage,
which translates to the total amount that you paid for your house.
A Mortgage Rate That Varies Only Two Percent Can Have
a Big Impact on House Cost.
When you carry your mortgage to full term, the mortgage rate can have a
significant impact on the total cost of your home. Even a difference of
two percent can realize you a total savings of tens or even hundreds of
thousands of dollar. To make this more clear, let's take a look at an
example.
|
Say that you take a $135,000 mortgage with an eight percent mortgage rate and a term of thirty years. If you carry the mortgage for the full term, you will have paid $222,000 in interest alone. Add that to the original mortgage amount of $135,000 and your house will have actually cost you $357,000.
|
|
While $232,000 is still quite a bit more than the house purchase price of $135,000, no one would argue that it is much better than $357,000. Clearly this demonstrates that the Mortgage Interest Rate really does make a difference and that it is worth shopping for the best rate you can get.
So, is the mortgage rate the only thing to look at?
Of course not, otherwise the decision would be much simpler than it is. Frankly, this is the founding reason you should consult a mortgage professional when investigating which loan is right for you.
First let's look at "points", what are they? Lenders today offer borrowers a range of interest rate/ point combinations, leaving it to borrowers to select the combinations best suited to their needs. (Points are charges that must be paid to the lender upfront, expressed as a percent of the loan amount, where 1 point equals 1%) High rate/low point combinations are good for borrowers who are either cash short or who don't expect to be in their house very long. Low rate/high point loans are for borrowers who can meet the cash requirement, and either have a long time horizon or need to reduce their monthly mortgage payment.
So, is it possible to have a low rate with little or no points?
Yes it is. A mortgage broker has the advantage of playing big lenders/banks/investors against each other for you. As a broker, MPOA can consult you on the best rate vs. points that several lenders are offering at any point in time. To find out more, please ask us how. Either give us a call (866)-297-MPOA, send an e-mail or fill out the quick contact form.
Check these
interesting tips on the tax savings points can provide.
Well, if we knew that, we would be able to serve you better in the fortune telling business!
No, really, this is a subject that everyone has their own opinion on, but it is just that....their own opinion. Fact is, rates vary with the state of the economy. When the Fed increases interest rates, it doesn't ripple evenly through the economy. Different interest-rate related products will behave in different ways leading up to, and in response to, a Fed rate increase. Below is a look at how some loan products vary on based on the economic outlook.
Fixed-rate mortgages: Fixed mortgage rates are closely tied to long-term government bond yields, and are not directly tied to Fed interest rate moves.
Adjustable-rate mortgages: Rates on ARMs are primarily tied to short-term indices, such as the one-year Treasury or the 11th District Cost of Funds Index. ARMs are more sensitive than fixed-rate mortgages to the Fed's rate moves.
Home equity loans: Rates for home equity loans are fixed, and increases following Fed rate hikes will not affect existing borrowers. However, new borrowers will see home equity loan rates moving higher within days of the Fed's interest rate hike. Home equity loans are often tied to the prime rate, which moves in close concert with Fed interest rate hikes.
Home equity lines of credit (HELOCs): Variable-rate HELOCs will increase for both existing and new borrowers alike. Lenders will be quick to reprice HELOCs on the heels of the Fed's rate hike, with most borrowers noticing the higher rates within one or two billing cycles. HELOC rates will closely mimic moves in the prime rate.
As a current sample, our current rates are as follows. Either give us a call (866)-297-MPOA, send an e-mail or fill out the quick contact form to get more rate information or to lock in a rate.
Our Current Rates:
Try these other mortgage calculators:
What do closing costs consist of?
Why does a loan officer ask you what you are ultimately trying to accomplish? (If they don't, turn and run!)
Most mortgage companies can put together a custom solution for so that question simply gives them a guide. However, a great mortgage loan officer will also suggest ideas to not only accomplish your goals, but give you more ideas about what's going on in the industry that might even get you something you didn't know existed.
Why does a loan officer ask you what you are ultimately trying to accomplish? (If they don't, turn and run!)
Most mortgage companies can put together a custom solution for so that question simply gives them a guide. However, a great mortgage loan officer will also suggest ideas to not only accomplish your goals, but give you more ideas about what's going on in the industry that might even get you something you didn't know existed.
How do I know I'm getting the best deal?
Why does a loan officer ask you what you are ultimately trying to accomplish? (If they don't, turn and run!)
Most mortgage companies can put together a custom solution for so that question simply gives them a guide. However, a great mortgage loan officer will also suggest ideas to not only accomplish your goals, but give you more ideas about what's going on in the industry that might even get you something you didn't know existed.
Why does a loan officer ask you what you are ultimately trying to accomplish? (If they don't, turn and run!)
Most mortgage companies can put together a custom solution for so that question simply gives them a guide. However, a great mortgage loan officer will also suggest ideas to not only accomplish your goals, but give you more ideas about what's going on in the industry that might even get you something you didn't know existed.
How do I know I'm making the right choice?
Why does a loan officer ask you what you are ultimately trying to accomplish? (If they don't, turn and run!)
Most mortgage companies can put together a custom solution for so that question simply gives them a guide. However, a great mortgage loan officer will also suggest ideas to not only accomplish your goals, but give you more ideas about what's going on in the industry that might even get you something you didn't know existed.
Who is Fannie Mae and Freddie Mac?
Why does a loan officer ask you what you are ultimately trying to accomplish? (If they don't, turn and run!)
Most mortgage companies can put together a custom solution for so that question simply gives them a guide. However, a great mortgage loan officer will also suggest ideas to not only accomplish your goals, but give you more ideas about what's going on in the industry that might even get you something you didn't know existed.
Why does a loan officer ask you what you are ultimately trying to accomplish? (If they don't, turn and run!)
Most mortgage companies can put together a custom solution for so that question simply gives them a guide. However, a great mortgage loan officer will also suggest ideas to not only accomplish your goals, but give you more ideas about what's going on in the industry that might even get you something you didn't know existed.
What's a FHA/VA loan? Can they help me?
Why does a loan officer ask you what you are ultimately trying to accomplish? (If they don't, turn and run!)
Most mortgage companies can put together a custom solution for so that question simply gives them a guide. However, a great mortgage loan officer will also suggest ideas to not only accomplish your goals, but give you more ideas about what's going on in the industry that might even get you something you didn't know existed.
Why does a loan officer ask you what you are ultimately trying to accomplish? (If they don't, turn and run!)
Most mortgage companies can put together a custom solution for so that question simply gives them a guide. However, a great mortgage loan officer will also suggest ideas to not only accomplish your goals, but give you more ideas about what's going on in the industry that might even get you something you didn't know existed.
Try our mortgage glossary for those terms you hear loan officers throw at you...click here.
|
Just want to ask a simple question? Ask a question, you'll get a quick, no frills answer from one of our mortgage consultants. Try it, you'll like it.
|
| To find out more about different mortgage programs, please visit our website or contact one of our well informed Loan Officers (Mortgage Consultants). If you'd like us to have someone contact you please e-mail us here and we'll have someone contact you right away. |
