By Dan Fullmer
Banks advertise their mortgage interest rates all the time. It goes without saying that they want to advertise the lowest rate possible, but that does not mean that you will qualify for that low rate. So, picture that you understand the difference between the actual rate their advertised rates.
Banks advertiser rates all over the TV, radio, and Internet. Many times they will advertise what is called a buydown rate versus what the actual rate is. I buydown rate typically includes the borrower to bring in thousands of dollars to buy down the rate.
Banks receive their mortgage interest rate from the same place as every other bank across the nation each and everyday. Although the rates may fluctuate from bank to bank as some banks are more aggressive with their particular rates, it is common to see most banks within an eight to a quarter point of each other. If you're looking at a buydown rate, you may see the fluctuation and a bigger scale.
How much does it cost to close a mortgage? Your make sure that it makes sense to refinance your mortgage. If you can't recoup the closing costs within 24 to 48 months, it typically does not make sense refinance unless there's something else that you're looking for other than savings.
The second thing you need to do is make sure that you know your credit scores. This will help you shop with confidence and be able to provide the needed information to each lender. Here's the best place that we have found that gives a complete and accurate credit report.
Should I go with a fixed rate mortgage or an adjustable rate mortgage? You mean to make sure you ask your mortgage lender this question and have them walk you through what's good about an adjustable rate mortgage and what's bad about an adjustable rate mortgage. For some people in adjustable rate is great, but all depends on your current situation.
Make sure you check and see if there is a prepayment penalty on this loan.
The fifth and most important step is to make sure that you're working with someone that you trust. My work was the one who has experience in the mortgage industry and can overcome any troubleshooting situations that may arise. Let's face it, in any industry or are those that don't have a clue what they're doing. Make sure you ask the right questions and don't work with one of these people. It'll just end up biting you in the end.
About the Author:
Dan Fullmer is a mortgage planner that loves to work with buyers and those who need to refi their mortgage. If you have questions, call Dan at 208-465-6666 to get your questions answered. Make sure to visit our site us here top 10 fixed rate mortgages and our home page here top 10 fixed rate mortgages
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