lenders: Mortgage Lock-in
- 01/14/20 04:29 PM
A mortgage lock-in is a lender's agreement to hold a specific interest rate for a stated period for a loan at the prevailing market interest rate. This provides the borrower some protection against the interest rates going up during the lock period. If you think the rates are going down, the advantage would be to "float" and take advantage of the lower rate. If you think the rates are going up, you could lock when you apply or when the application is approved. Some buyers are marginally qualified at the current rate and if the rates go up, it could keep them from … (5 comments)
lenders: Is a Home Equity Loan an Option?
- 01/28/19 01:25 PM
Here's the scenario: you have a project and need to borrow some money, but you want to do it in the most economic manner. You've got a low rate on your existing first mortgage and don't want to do a cash-out refinance and pay a higher rate. Is a home equity loan an option? Prior to 2018, homeowners could have up to $100,000 of home equity debt and deduct the interest on their personal tax return. The Tax Cuts and Jobs Act of 2017 eliminated the home equity deduction unless the money is used for capital improvements. Regardless of the deductibility, lenders will still loan … (1 comments)
lenders: Not Available for Every Buyer
- 03/09/17 05:01 PM
Lenders regularly publish mortgage rates but they may not be available for all buyers. Imagine that the mortgage payment based on an advertised rate influenced a buyer to make an offer on a home. After negotiating a binding contract, this buyer makes a loan application and finds out that for any number of possible reasons, that rate isn’t available. Even if the person does financially qualify for a loan at a higher interest rate, it will not be the payment that the buyer expected when the contract was negotiated. Lenders evaluate several factors such as the borrower’s credit score, debt-to-income and loan-to-value ratios. These … (2 comments)
lenders: Selecting a Local Lender
- 03/21/15 07:32 AM
Selecting a Lender Finding a mortgage lender is not a problem. Selecting someone who will help you find the best loan product for your situation even if it means sending you to another lender is paramount. There is a huge advantage to be able to sit across the table from someone you’re doing business with and look them straight in the eye. It’s difficult to make an informed decision based on a website and a phone call. Doing business with a full-time professional who specializes in residential loans like you’re trying to get is important. You want the loan officer … (1 comments)
lenders: Why Borrowers Pay Different Rates
- 10/27/13 03:08 AM
Why Borrowers Pay Different Rates Lenders, like any business, have to make a profit. The cost of acquiring the funds, the operating costs to service and the expected profit margin are easily identified. The variable in pricing is the type of mortgage and the credit worthiness of the borrower. A loan with a 3.5% down payment is riskier than a loan with 20% down payment. If the lender has to take the property back to recover their expense, the margin is greater between what is owed and what the property is worth on an 80% mortgage. Credit scoring is a … (1 comments)
lenders: Rate Not Available..Reasons Why
- 02/06/12 01:54 PM
Regardless of what a lender quotes on mortgage rates, the actual rate paid by a borrower is based on a number of variables. Lenders determine whether to loan money and at what rate based on the risk involved with the transaction. Factors that increase the risk that the loan will be repaid will proportionately increase the interest rate charged to the borrower. If the risk becomes too high, the loan will not be approved. Loan amounts - conventional loans for more than the conforming limits set by Fannie Mae are considered jumbo loans and generally have a higher interest rate. FICO … (0 comments)
A mortgage lock-in is a lender's agreement to hold a specific interest rate for a stated period for a loan at the prevailing market interest rate. This provides the borrower some protection against the interest rates going up during the lock period.
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