Many of us love the idea of getting that killer deal but as guest blogger Barbara Van Duyn, points out it's good to still stay grounded in reality when making financial and home purchase decisions. Barbara is a certified mortgage planner with First Priority Financial. If you have any mortgage questions, you can reach Barbara through her Web site, www.BarbaraVanDuyn.com.
Are you a rate shopper? Have you gotten sucked into the radio ads touting 4.875% with an APR of 5.125% or something similar? How about the online offers that will quote you a rate if you just supply your name, address, phone number and email? Do you really want someone who buys your contact information to also manage your loan origination?
Here’s a brief list of variables that go into determining your interest rate whether it’s a purchase or refinance.
Loan Amount – conforming, high balance conforming or jumbo
Property description - single family residence or something else
Occupancy – primary residence, second home or investment
Loan to value – more than 80% or less
Loan period – 30-year fixed, 15-year fixed or something else
Loan program – conventional or government
FICO score – qualifying FICO 720+ or below
Rate lock period – 15, 21, 30, or 45+ days
Paying Points or No Points
These are the biggies but there could be other items that affect the rate you qualify for. So which rate are you really interested in … the teaser rate or the rate you actually qualify for? The next time you decide to shop for an interest rate, make sure your comparison includes the same criteria. Until the next time, take care. Barbara
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