1) Get a Loan Estimate (LE). There’s always a relationship between fees / points / and rate. …You won’t know what that relationship is unless you look at a LE. (A low rate is great, but if you are paying points to get it – it may not be so great after all.)
2) When looking at the LE – focus on the mortgage fees. These are the only fees the loan officer really knows at the time he/she is creating the LE. They will just be estimating the title fees, insurance, and taxes.
3) Pay attention to the date on the LE – or rate quote. The rate market changes daily. You have to compare apples to apples. …To compare two rates generated 1 week apart is a waste of time. The rate that appears higher may actually be priced more competitively than the lower rate – depending on when the quote was generated.
That’s it for today!
Have a good day! …and thanks for reading.