 When is your loan going to close?
Interest rates and points vary by the length of time needed to process the loan or if you are buying a home, to close the escrow.
- 15 day pricing is the lowest rate
- 30 day pricing is next best
- 45 day pricing follows 30 day
What is your credit score?
How many credit lines are on your credit report? How long have you had credit?
On most loan programs the interest rate and points vary according to your credit score. A 720+ credit score gets the best interest rate on most programs, 680-720 is next best, followed by 620-680, then the under 620 scores.
How much down payment can you make?
What is your loan-to-value ratio? 100%, no down payment loans have the highest interest rates and are difficult to get. 81%-100% loans cost more than loans with a 20% down payment.
Are you going to occupy the home?
Non-owner occupied loans are more expensive than owner occupied.
How much loan are you applying for?
Since it costs a lender as much to service a $100,000 loan as it does to service a $250,000 loan, loans under $125,000 often cost more than loans above that. Also, loans over $417,000 are classified as Jumbo loans and have interest rates than loans below $417,000. That number may vary according to where you live.
Do you want to pay your own taxes and insurance each month?
If you establish an impound account with the lender to handle your tax and insurance payments, you may save up to ¼ point in loan fee.
If you are refinancing, are you taking cash out?
If so and you are borrowing more than 75% of the value of the home, the interest rate and points may be higher than if you were refinancing only to lower the interest rate.
Can you document your income?
If not, it is much more difficult to get a loan now.
Will there be a second mortgage combined with your first mortgage?
If so, how much?
Will you be receiving any gift funds to help you purchase your home?
Will you have cash reserves available after the close of escrow?
If so, how much?
Will you have cash reserves available after the close of escrow?
Are you a U.S. citizen, permanent resident or non-permanent resident?
 Giving an interest rate quote without knowing your personal situation is like a doctor giving you a prescription without examining you. Interest rates can change hourly in today's turbulent financial market. For many years, mortgage rates mirrored the stock market. Now it seems the two markets work in reverse. No matter what the general trend is, no one can predict short term volatility.
Here’s a friendly Warning - Many people who shop rates through the newspaper, the Internet or randomly calling lenders end up feeling that the lender used a bait and switch tactic on them because the rate and points they end up with are not the same as they were originally quoted.
Usually the problem is the original loan officer didn't ask the right questions or enough questions before quoting an interest rate. Not all interest rate quotes on the Internet are updated daily, yet interest rates can sometimes change hourly.
Did you know?…
Many Internet lenders don't employ experienced loan officers? They view mortgages as a commodity and often use clerical staff to answer your questions. You end up never talking with a loan officer.
If you decide to shop rates by calling different mortgage lenders you probably need to talk to all of them on the same day since rates can and do frequently change. Whomever you talk with needs to ask you the appropriate questions to give you the answer that's correct for your personal situation.
All of this to say, we have found it to be in your best interest not to post rate quotes on our website. We sincerely hope we have explained thoroughly and exactly why we've chosen this business model. We welcome your questions, feel free to call us at 1-800-325-2062.
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