(Continued from 10 Questions To Getting The Best Mortgage - Part 1)
10 Questions To Getting The Best Mortgage: To get the best mortgage, asking basic rate and fee questions isn't enough. Just as important, is making sure your mortgage consultant asks you questions to determine your goals and objectives so they can help you make informed decisions and get the best mortgage for your situation. To do this, you want to work with someone that you trust. So, with getting the best mortgage in mind, here are 10 questions to ask:
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6) What is the difference between points and origination fees?
To understand your total costs and get the best mortgage, you want to understand if points and/or origination fees are being charged. And, the consultant should be able to explain the difference.
7) What are mortgage rates based on?
Mortgage rates are based on activity in the Mortgage Backed Securities (MBS's) markets. As demand increases for MBS's, MBS prices increase and mortgage rates come down. You may hear "10-Year Treasury" or simply, "Treasury Bonds". While we watch the treasury for overall trends, it's MBS's that drive interest rates and MBS's do not always follow treasury bonds.
8) What economic indicators or events in the near future would cause rates to change?
If the individual is following the market, they should be able to give you some insight as to current market movers. That might be reports such as Unemployment, Consumer Price Index (CPI), New 
Housing Starts, Consumer confidence, etc. Economic reports drive investors to buy and sell and each of these can be drivers. You want to ask questions of someone who knows the market and the current trends to help you make an informed decision and get the best mortgage.
9) When the Federal Reserve Bank (FED) changes rates, what effect does this have for mortgages?
The FED's policies to drive short-term interest rates down often have exactly the opposite effect on mortgage rates. With the reduction in overnight rates, investors are lulled out of what are traditionally "safe" investments, such as MBS's or Treasury bonds and into the stock market. When that happens, the price on the MBS instruments decline and the mortgage rates go up!
10) How will this loan affect my long and short-term financial goals?
I like to meet with clients as early in the process as possible. One of the reasons is to understand their particular goals and objectives. Anyone interested in your continuing business should ask you what your plans are for the property and the loan, and explain and identify the best mortgage options for your situation.
Conclusion: You can see where I'm going with this, when it comes to getting the best mortgage, asking questions is important! Beyond just rates and fees, these questions will help you find the best mortgage and work with someone you can trust! One other piece of advice, avoid the temptation to simply email these questions to various mortgage professionals! Just like you would interview your Realtor or Financial Advisor, getting the best mortgage requires you to interview your mortgage professional! It may take a bit of extra work, but these questions should help you get the best mortgage for your situation!
Questions? To contact me, click here to visit Troy Village's activerain website or here to email me.
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