Winning The Interest Rate Game
The subject of mortgage rates, origination fees and the paying of discount points have traditionally been a source of considerable stress for home buyers. But it needn't be stressful at all if you understand just a few simple basics.
And in many cases hourly. Yesterday's quote is very likely to be different than today's rates, and today's rates different than tomorrow's. If you can't afford a rate increase, than lock in your interest rate as soon as you have completed your loan application.
- DON"T PLAY THE GUESSING GAME
Nobody, and we mean nobody, has a crystal ball which will accurately predict when, and in which direction, interest rates will move. If any lender or mortgage broker tries to tell you they have their finger on the pulse of the markets, it is a good indicator that it may be time to find a more honest or knowledgeable professional. While a good Mortgage Broker stays up to date on the markets, it is nearly impossible to predict what may or may not happen on any given day.
- GETTING THE RIGHT RATE AND POINT COMBINATION
Determining which combination of rates and points is best for you is generally a function of how long you may intend to keep the mortgage. In general, the longer you plan to keep the mortgage, the more advantageous it is for you to get a lower interest rate by paying additional points. We have found that generally it is not in our clients best interest to be spending upfront monies to buy down interest rates, however, it is best to look at each individual scenario to determine if this is right for you.
- DON"T BE SEDUCED BY "low-ballers"
While the overwhelming majority of mortgage lenders are honest, honorable and hard working professionals, unfortunately, there are a handful who are not. Be wary of lenders promising exceptionally low rate quotes. Instead, limit your focus to professional lenders, passionate about their work who are dedicated to what is best for you. What you should be looking for is a Mortgage Broker who will take the time to explain all your options and aid you in making the mortgage choice that fits your own unique situation. In other words, look for the Ultimate in Service and the Ultimate in Results.
Equal Housing Opportunity | Ultimate Lending Concepts, Inc 2008™|