I've been in the mortgage business for the last 12 1/2 years. During this time I have seen the highs and lows or peaks and valleys. The mortgage industry, and the country in general, is in one of the most challenging times in memory.
I decided to start a blog that may assist borrowers, especially first time homebuyers, in navigating through these "troubled waters" (que Paul Simon).
CHANGE HAS COME TODAY
This industry has been under constant change for the last 12-18 monthsand for the most part these changes were necesaary. Believe me when I say the way we do business today changes on almost a daily basis. Many programs such as stated income, option arms and 80/2o loans and others are no longer available. These programs were responsible for banks and mortgage brokers going out of business at a record rate, over 320 since 2006 according to the site http://ml-implode.com/.
It doesn't appear any institution is safe. Even Bank of America is facing difficult times.
I intend to address many issues here from the different type programs available today to what market factors affects mortgage rates.
For my first post I am going to keep it simple. How to get quoted an accurate interest rate.
WHAT'S YOUR RATE TODAY?
Talk about a loaded question. That's like asking a car salesman "how much are your cars?".
Your friendly neighborhood salesman would need just a little more information than that to quote an accurate price. As example, if you were interested in a Yugo it would be a slightly different price then say, a Toyota. Let's say you're interested in a Toyota (I don't know if they even make Yogo's anymore. And if they do, they should stop! They should have named them Yu-don't-go).
Next the salesman would need to know what model Toyota. A Corolla, a Camray, a Prius, etc. Once he knows the model he will probably ask you what features or accessories you would like such as leather versus cloth seats or perhaps a sport package or GPS and so on and so on.
The point is, there is not just one price for all automobiles any more than there is one shoe size that fits all feet.
In comparing this to an interest rate there are also a number of factors that must be addressed.
There is not just ONE loan or program that fits all situations for all people. And the rate can vary depending on WHAT program is right for you.
Are you buying or refinancing, fixed rate or adjustable, fully amortizing or interest only?
If buying how much do you have for a down payment? Will you be getting a gift for the down payment?
If refinancing, are you looking for some cash at the closing? How much do you estimate your home is worth and how much do you currently owe? Do you have a second mortgage?
These are just some of the questions you may be asked in order to narrow down the right program and rate.
And today more than ever, for any loan, one of the most important questions is........do you have good credit?
Suppose you're only planning on staying in your home for the next 2 years. While not right for most people, an adjustable rate or interest only loan may be the right program for your specific situation.
All of these items will factor into what program and therefore what rate is available.
Different programs such as FHA versus Conventional offer different rates as do VA and USDA.
And if you are quoted one rate in the morning and do not lock in that rate, do not be surprised if you are quoted a different rate later (higher or lower) in the day. Rates can change at any time during the day, sometimes several times in a day.
The mortgage industry, as most people know, has changed dramatically. And it is still very much in a state of flux.
So please understand that when you call a bank or broker about interest rates, they will need to ask a few questions to decide if you're looking at a Hyundai or a Lexus.
P.S. Anyone interested in a "nice" Toyota Opel. Just kidding.
I decided to start a blog that may assist borrowers, especially first time homebuyers, in navigating through these "troubled waters" (que Paul Simon).
CHANGE HAS COME TODAY
This industry has been under constant change for the last 12-18 monthsand for the most part these changes were necesaary. Believe me when I say the way we do business today changes on almost a daily basis. Many programs such as stated income, option arms and 80/2o loans and others are no longer available. These programs were responsible for banks and mortgage brokers going out of business at a record rate, over 320 since 2006 according to the site http://ml-implode.com/.
It doesn't appear any institution is safe. Even Bank of America is facing difficult times.
I intend to address many issues here from the different type programs available today to what market factors affects mortgage rates.
For my first post I am going to keep it simple. How to get quoted an accurate interest rate.
WHAT'S YOUR RATE TODAY?
Talk about a loaded question. That's like asking a car salesman "how much are your cars?".
Your friendly neighborhood salesman would need just a little more information than that to quote an accurate price. As example, if you were interested in a Yugo it would be a slightly different price then say, a Toyota. Let's say you're interested in a Toyota (I don't know if they even make Yogo's anymore. And if they do, they should stop! They should have named them Yu-don't-go).
Next the salesman would need to know what model Toyota. A Corolla, a Camray, a Prius, etc. Once he knows the model he will probably ask you what features or accessories you would like such as leather versus cloth seats or perhaps a sport package or GPS and so on and so on.
The point is, there is not just one price for all automobiles any more than there is one shoe size that fits all feet.
In comparing this to an interest rate there are also a number of factors that must be addressed.
There is not just ONE loan or program that fits all situations for all people. And the rate can vary depending on WHAT program is right for you.
Are you buying or refinancing, fixed rate or adjustable, fully amortizing or interest only?
If buying how much do you have for a down payment? Will you be getting a gift for the down payment?
If refinancing, are you looking for some cash at the closing? How much do you estimate your home is worth and how much do you currently owe? Do you have a second mortgage?
These are just some of the questions you may be asked in order to narrow down the right program and rate.
And today more than ever, for any loan, one of the most important questions is........do you have good credit?
Suppose you're only planning on staying in your home for the next 2 years. While not right for most people, an adjustable rate or interest only loan may be the right program for your specific situation.
All of these items will factor into what program and therefore what rate is available.
Different programs such as FHA versus Conventional offer different rates as do VA and USDA.
And if you are quoted one rate in the morning and do not lock in that rate, do not be surprised if you are quoted a different rate later (higher or lower) in the day. Rates can change at any time during the day, sometimes several times in a day.
The mortgage industry, as most people know, has changed dramatically. And it is still very much in a state of flux.
So please understand that when you call a bank or broker about interest rates, they will need to ask a few questions to decide if you're looking at a Hyundai or a Lexus.
P.S. Anyone interested in a "nice" Toyota Opel. Just kidding.
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