Mortgage Interest Rates - What do you have to give me???

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Mortgage and Lending with Social Media - Infinity Home Mortgage Company, Inc

 

Interest Rates - What kind of rate do you have for me?

 

mortgage interest rates

 

Mortgage interest rates can be very complex.  It's a question that is harder to answer today more than ever before. There are just to many variables that can go into a specific interest rate. Yes, you will still see many advertisements on the tv, on the internet, on Facebook, or hear them on the radio that give out low interest rates. How many times do you see the fine print appear and last for only seconds. This is where some of your detailed information is located for that specific mortgage rate being mentioned.

Why do you see low interest rates that usually seem to good to be true?  Within that fine print, you will usually see such terms as : 80% LTV, credit score 720+, and a specific loan amount. This is not the norm and most borrowers don't have this kind of combination.  This is where you need a true mortgage professional that will ask you the right questions, educate you on the different types of mortgage programs, the different interest rates, and help explain the whole process properly. There are just to many call centers with loan officers that just give you what you think you want and it could end up costing you more in the long run.

 

 

 

questions about mortgage interest rates

Questions that a good loan officer should be asking you, the borrower :

1. What type of monthly payment would you feel comfortable with, and not to exceed. (this is to include property taxes and homeowners insurance)

2. Your goals - Goals for the next 3 years, 5 years, and 10 years. This is extremely important for several reasons. (to include kids & schooling)

3. Other questions - Please read : Jeff Belonger's top 10 questions.

 

 

 

mortgage interest rates

What variables can go into an interest rate?

1. Just the difference between a FHA loan and a conventional loan can be huge, because of the major pricing adjustments on a conventional loan depending on LTV (loan to value) and or credit scores.

2. Credit scores & loan-to-values (LTV) - as mentioned above

3. Backend DTI (debt-to-income) Ratios - With some loan products, if you go over 50% or 55%, there can be pricing adjustments.

4. Escrow waivers & condo loans - This would be on conventional loans only.

5. Lock-In Period - A biggie... So many people quote 30 day locks, yet so many lenders are taking 45 to 60 days to close a loan. In my 17 years in the mortgage industry, I have found that this is one that is left out the most, when a loan officer offers a specific interest rate and explains the mortgage process. What good is my 30 day rate quote based on your closing date 60 days from now.

6. Loan Amounts - Believe it or not, a smaller loan amount with the same credit  score and down payment will usually have a higher rate or more points/costs than a much higher loan amount.

 

 

 

Summary : As I have stated many times, you need to make sure that you are working with a professional loan officer. There loan officers out there that will not ask the correct questions, or those that might put you into the wrong type of loan just because they aren't familiar with other mortgage programs. The three mortgage programs that you need a loan officer that is knowledgeable are : FHA loans, USDA loans, and VA loansMortgage Interest Rates can vary drastically based on many pieces of the puzzle, yet this needs to be explained to the consumer.

 

 

 

 

 

 

 

 

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For more information on FHA loans, please go to this link. The FHA Expert

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

HUD

For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors

 

Copyright © 2010 by Jeff Belonger of Infinity Home Mortgage Company, Inc

 

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follow Jeff Belonger on Twitter

 

The FHA Expert's fan page on Facebook     Add Jeff Belonger to your network @ LinkedIN

                                                                            FOLLOW ME ON FACEBOOK

 

 

- FHA Loans - USDA Loans - VA Loans -

- Energy Efficient Mortgages - 

- Conventional Loans - 203 k loans -

- FHA Home Loans - Mortgages -

 

Experience & Knowledge at its BEST !!!

 

 

Follow me on:

Mortgage Myth Busters

 

______________________________________________________________________________________________________________

For more information on FHA loans, please go to this link. The FHA Expert

For important mortgage insight to watch for, please read : Consumers need to be aware of these Red Flags!

HUD

 

For information about FHA myths & FHA rumors, please read : FHA Myths & Rumors

 

Copyright © 2011 by Jeff Belonger of Infinity Home Mortgage Company, Inc

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Tim Bradford 06/21/2010 10:49 AM
Topic:
Lending / Financial
Location:
New Jersey Camden County Cherry Hill
Groups:
Realtors®
Mortgages
All About Mortgages/Mortgage Networking
1st Time Buyers
The FHA Mortgage Group
Tags:
interest rates
mortgage interest rates
fha rates
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fha loans interest rates
interest rates in new jersey

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Rainmaker
246,826
Rich Sellers
Rich Sellers Lake Arrowhead, CA (Coldwell Banker) - Lake Arrowhead, CA
Realtor DRE#01148405

No matter what you give them they will want a better rate!

Jun 21, 2010 05:16 AM #1
Rainmaker
394,903
Lew Corcoran, ASP®
Scena Home Staging & Decora Photography - East Bridgewater, MA
Home Stager & Real Estate Photographer

I have rates between 3% and 23% - which one do you want?

Jun 21, 2010 05:37 AM #2
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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

 

RICH.. . I hear what you are saying, but I want to educate the average borrower.  I really don't want to deal with that kind of borrower that thinks they know it all and think they have the best rate, just because a loan officer said so, yet hardly asked them any important questions.

Lew.... . can I go in the middle and just get the 12% rate, then we all can be happy...

 

Jun 21, 2010 05:52 AM #3
Rainmaker
394,903
Lew Corcoran, ASP®
Scena Home Staging & Decora Photography - East Bridgewater, MA
Home Stager & Real Estate Photographer

Jeff - You mean you can pay as much as 12%?

What the consumer doesn't realize is there's a lot that will ultimately determine what loan - and what rate - he'll be able to get. Just as it is with car insurance, there's a lot of questions that must be asked - and answered - before you can arrive at a loan product - and interest rate - that best meets the client's needs.

Jun 21, 2010 09:50 AM #4
Rainer
96,415
Nicholas Goraczkowski
Aurora, CO
Your Mortgage Resource - (720) 83-RATES
You are correct - so many folk know rate and thats it. It's sad that many LO simply quote a rate and thinks that earns the business.
Jun 22, 2010 05:04 AM #5
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Paul McFadden
Paratex - Seattle, WA
Pest Control, Seattle, WA.

Jeff: Thanks for the post. One thing our big boss told us LO's to not do a couple months ago was sell rate. I know everyone is looking for it although very few clients actually remember what rate they got (unless they look) a few years later. Thanks for clarifying. If all we're selling is rate and fees, it cheapens what we do in my opinion. I don't know about you but I'm trying to find that niche; one where everyone else isn't. Take care.

Jun 22, 2010 06:48 AM #6
Rainer
74,324
Jennifer Dulmaine
Keller Williams Realty - Spencer, MA
Seth Campbell Realty Group

Jeff..Thanks for sharing this...I am always looking for information on mortgages that I can share...asking questions in our profession, makes us stand out and be top of mind that we cared enough to ASK...Thanks

Jen

Jun 22, 2010 06:51 AM #7
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Margaret Woda
Long & Foster Real Estate, Inc. - Crofton, MD
Maryland Real Estate & Military Relocation

Excellent information, as always, Jeff.  If only ALL loan officers would ask those same questions.

Jun 22, 2010 07:07 AM #8
Rainer
332,782
Irene Kennedy Realtor® in Northwestern NJ
Weichert - Lopatcong, NJ

Jeff,

And I cringe when my buyers insist they're going to go with the person who quotes them the lowest rate over the phone - without any thought to the other factors. Have had several deals almost tank until I got them to an expert!

Jun 22, 2010 07:14 AM #9
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Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

 

LEW... .  we both know this well.  It just irks me when I speak to a borrower that has spoken with 2 other loan officers, who is leaning towards a 5 yr arm... and I beat out both LO's on the 30 yr fixed rate, but 1 loan officer is beating me out on the 5/1 arm by 3/8% of percent.. yet that borrower has no idea on how the adjustable works, that even if he refinances 4 yrs from now back into a FHA loan, even if he has 20% equity, that he will still have monthly MI, etc, etc.. yet he thanks me for the info, goes with the lowest L.O... yet rates come down in the nxt 4 days and that loan officers rate never moved down, but mine did...the loan officer played the rate game and won that time.. I know we all need to make a living... but as stated, you get a rate with nio value, how do you even know if that is the best program for you...  thanks

 

NICHOLAS... . i8t is sad, very sad.  It should be part of our job to educate the borrower, yet many loan officers don't know how or care... and just say, I am the lowest, I am the best, or I am the cheapest.. yet they can't count to 2 or know the major points of s specific mortgage program.  Sorry to sound negative, but I am still finding it out there... 

I Guarantee to Meet or Beat Any Lenders Interest Rates or terms!

 

PAUL... .  I have always been against selling rate, even after my first 6 months in this business. I always tried to show the value in certain things...  to explain cl;osing costs, that some don't see when you sell rate... or the lack of, when a loan officer either forgets to add a specific closing fee or cuts the property taxes down some, just to make themselves look cheaper... we could be here all day, but it's up to you and me to educate each borrower and to ask those important questions to determine what is best for that borrower.  thanks

 

JEN... .  my pleasure .. I love helping out, sharing, and educating. And never hesitate to reblog any of my posts.  Not only does it give your readers some good info, but it actually gets searched by google well, and could possibly bring you new clients. I have seen some of my reblogged posts sometimes rank higher than my original, so it also gets your name out there.  thanks

MARGARET... .  well, if all loan officers worked this way, my competition would be much tougher.  Seriously, I earn most of my business by educating the borrower, especially when they compare what I have told them to what other loan officers have said... and once I win them over that way, it makes my job easier. But I do thank you for your polite compliment... and I will let you know about that lead, if they call back. thanks

IRENE.... .  I am sure many cringe... and I hope that we get a chance to meet again, since the last time went so quick, when we all were up in NYC.  thanks

 

Jun 22, 2010 07:43 AM #10
Rainer
74,324
Jennifer Dulmaine
Keller Williams Realty - Spencer, MA
Seth Campbell Realty Group

Lew thanks for the advice...I will surely do that--Thanks Jen

Jun 22, 2010 08:32 AM #11
Rainmaker
1,157,274
FN LN
Toronto, ON

Jeff - It is important to educate borrowers so that they understand the issues when selecting a mortgage.  You have an excellent series of questions to ask borrowers.

Jun 22, 2010 05:51 PM #12
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