2009 January | Mortgage Refinance Rates

Archive for January, 2009

4 things to watch out for when choosing a mortgage company

by admin on Jan.28, 2009, under Mortgage Advice - Choosen One

We all know that there are a lot of mortgage companies out there. But how do you know which company to choose? Some companies have flashy advertisements about low interest rates, but are they really the best company to choose? A mortgage is a very large investment, so the company that you choose has to be the best company out there for you. As a mortgage expert, I can give you a few tips when choosing a mortgage company.

1. Watch out for interest rates. Some companies have higher interest rates than others. Choose the company with the best interest rate for you (usually the lowest, but not always). Be careful of special promotions that have hidden fees. Don’t get sucked in by an extremely low interest rate. Be sure you know everything involved with that interest rate. Be sure to check things out and understand the terms of the interest. If you do this, you will have a much better chance of getting a nice interest rate that you and your family are comfortable with.

2. Be sure to know all of the fees. Some mortgage companies have hidden fees, or they tack on additional costs. Don’t get stuck paying extremely large fees. Once again, companies will try to hide behind low interest rates, but then they will stick you with several large fees. Don’t fall for it!

3. Be mindful of the application and appraisal fees. You want to get the lowest fee possible with the highest quality service. Some mortgage companies charge insane amounts for applications and appraisals. Charging a lot does not necessarily mean that they are worthwhile companies. The lowest price is always the best way to go!

4. Finally, and most important of all, is the service. Some companies are not committed to their customers. A Mortgage company that gives you terrible service, but extremely low rates is not the best company out there. Watch out for companies with quite a few different contacts. One on one customer service is the best. You want a mortgage company that cares and is willing to get to know you and your needs. How a mortgage company presents itself to its customers, and how it handles them is a reflection of the kind of company it is. A company that has lousy service, rude representatives, and little customer interaction is not the company for you.

Choosing a mortgage company may seem like a daunting task. Just remember to keep costs in mind. The most expensive is not always the best, nor is the cheapest always the best. Keep in mind service. Service is the most accurate representation of a company. If you follow these simple tasks I am positive that you will choose the best mortgage company for you and your family. Learn more our best advice on mortgage refinance rates, home equity rates, 2nd Mortgage Rate, Mortgage Rates Comparison, Mortgage Rates 30 year fixed, Home Loan Mortgage Rate, Mortgage Rate Quote, A Personal Mortgage Experience, 5 Criteria To Get Your Home Loan Mortgage approved. by Bart Fadington

Best Mortgage Rates

by admin on Jan.27, 2009, under Mortgage Advice - Choosen One

Where do you actually find the best mortgage rates?
The rate quotes are only as good as the company quoting them to you. Along with posting their mortgage rates on their own website, many mortgage companies post rates on other websites.

Just like the Progressive car insurance commercial, they say you can search on their website for other companies insurance rates. If you find a mortgage website with companies claiming to have the best mortgage rates, you may think this trusted website hand picked these mortgage companies.

Most mortgage websites are either lead generation websites where they promise they can get you the lowest mortgage rate if you enter in your information. Or, they make tons of money off other mortgage companies for posting their mortgage rate data.

The website itself does not confirm that these companies really have great rates. The mortgage company pays them to post their rates because the website is generating massive traffic. Committing blindly to a mortgage company just because someone, some advertisement, or some website persuaded (lied to get your trust) you is dangerous. Remember, to find the best rates, you have to find the best mortgage company. By Rob K. Blake

Good Mortgage Rates

Before obtaining good mortgage rates a borrower must understand what actually is in a mortgage interest rate. There are many factors that affect all mortgage rates in every mortgage transaction. Discount points, origination fees, Yield Spread Premium, and 3rd party fees are a few factors that can change your interest rate. Discount points is prepaid interest that is used to lower a mortgage rate.

Purchase Price $200,000

Down Payment $40,000

Loan amount $160,000

Discount points 1% or $1,600 of your mortgage loan amount.

Discount points MAY lower your mortgage rate by 0.5% for every point paid.

Every lender is different, and may only lower your mortgage rate by 0.25-0.375%.

If your current mortgage rate was 6.5%, and you paid one discount point, then your rate can go as low as 6.125-6.25%. Origination fees do not lower your mortgage interest rate. Origination fees are paid by the borrower to the bank, lender, and/or mortgage broker. This charge is associated with ‘originating’ your mortgage loan.

If a borrower isn’t willing to pay origination fees or discount points, then the mortgage interest rate is raised to recover the loss of revenue. If one lender is charging more fees/points, that can lead to a higher APR.