Financing in 11233>Question Details

Terri  Brath…, Home Buyer in 11233

How do i determine if themortgage interest rate quoted to me is a good interest rate?

Asked by Terri Brathwaite, 11233 Sun Aug 31, 2008

Mortgage Interest

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Check out the link. There's so much more to consider - but as a consumer - I guess keep it simple. Going rates are on that site.
0 votes Thank Flag Link Mon Sep 1, 2008
Hi Terri,

It's not too hard, but you need to decided what type of loan you are interested in first.
You need to be able to compare apples for apples.
Compare the rate, loan origination fee and process fees for starters.
Most mortgage brokers have the same offerings, so you will also have to decided who you feel
comfortable with.

Good Luck
0 votes Thank Flag Link Sun Aug 31, 2008
Terri,
Your question is a good one.....our recommendation is to find someone that is satisfied with their agent and begin by contacting a known quantity. Always request a "good faith estimate" that will clearly explain your quote.

We recommend that you speak with several representatives to get a clear understanding of the programs that are available. Be sure to ask questions and when unfamiliar terms are tossed around.....ask for clarifications.

The best bet is to start with speaking with someone you know and trust.

Good luck,
The "Eckler Team"
0 votes Thank Flag Link Sun Aug 31, 2008
Your interest rate is going to vary on many factors, such as loan program (FHA vs Conventional), credit score, loan amount, LTV (80% vs. 97%), term (30 year vs 15 year), region etc. etc..

When checking rates, the lowest rate is not ALWAYS the best. Would you sacrifice .25 (6.00 vs 6.25) in rate to get a smoother transaction and level of communication???

But to answer your question, call some LOCAL loan officers with your scenario - that way you know if you interest rate is good or not based upon your loan program.
0 votes Thank Flag Link Sun Aug 31, 2008
Terri,

For the most part, mortgage rates among lenders should not vary more than 1/4 percent. More than that, you should know that you are paying it in another way, as another "fee." As Gail said, it is often difficult to compare mortgages as there are many variables that affect the bottom line. Fees add up. Often mortgage lenders give the best possible scenerio on their Good Faith Estimates. I would ask them to give you the worst possible scenerio instead. Remember, everything, including fees and points are negotiable. The higher your credit scores, the more you can negotiate.
0 votes Thank Flag Link Sun Aug 31, 2008
Comparing rates is the simple part of this...it is all the other charges that may come up that should concern you. It is difficult to weed through the add-ons and compare apples to pineapples. You don't need any surprises at the closing table.

If you contact me off line at Gail@GailGladstone.com, I will give you the name and number of someone who can break it all down for you, explain the potential charges that could come up, what termonology each mortgage broker/bank loan officer may use for the same item, and assist you in comparing mortgage rates.
Web Reference: http://GailGladstone.com
0 votes Thank Flag Link Sun Aug 31, 2008
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