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.
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.
Current mortgage rates are displayed at Freddie Mac’s homepage. The average revenue made in a mortgage transaction is approximately 2.5% in total origination fees, discount points, and YSP. Mortgage lenders & Banks aren’t required to disclose YSP. You will normally see the interest rate with origination fees and/or discount points. Due to higher overhead costs, a mortgage lender and bank can charge a lot more fees than mortgage brokers. Find out more on our best one : 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, 97% Of American Homeowners Overpay Their Lender In Mortgage, Deadly Mistakes When Applying for a Mortgage, Composite Credit Report Score Simplifies Mortgage Issues, Refinancing Your Home Mortgage Loan With Bad Credit. By Robert Enriquez
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