Tim Bradford - AMMCorp.net


Mortgage Interest Rates - What do you have to give me???

Adding to Jeff's Post is the Loan Amount.  The pricing will be different on a $300,000 Loan versus a $100,000 Loan.  


Interest Rates - What kind of rate do you have for me?


mortgage interest rates


Mortgage interest rates can be very complex.  It's a question that is harder to answer today more than ever before. There are just to many variables that can go into a specific interest rate. Yes, you will still see many advertisements on the tv, on the internet, on Facebook, or hear them on the radio that give out low interest rates. How many times do you see the fine print appear and last for only seconds. This is where some of your detailed information is located for that specific mortgage rate being mentioned.

Why do you see low interest rates that usually seem to good to be true?  Within that fine print, you will usually see such terms as : 80% LTV and credit score 720+. This is not the norm and most borrowers don't have this kind of combination.  This is where you need a true loan professional that will ask you the right questions, educate you on the different types of mortgage programs, the different interest rates, and help explain the whole process properly. There are just to many call centers with loan officers that just give you what you think you want and it could end up costing you more in the long run.




questions about mortgage interest rates

Questions that a good loan officer should be asking you, the borrower :

1. Why type of monthly payment would you feel comfortable with, and not to exceed. (this is to include property taxes and homeowners insurance)

2. Your goals - Goals for the next 3 years, 5 years, and 10 years. This is extremely important for several reasons.

3. Other questions - Please read : Jeff Belonger's top 10 questions.




mortgage interest rates

What variables can go into an interest rate?

1. Just the difference between a FHA loan and a conventional loan, because of the major pricing adjustments on a conventional loan depending on LTV (loan to value) and or credit scores.

2. Credit scores & loan-to-values (LTV) - as mentioned above

3. Backend DTI (debt-to-income) Ratios - With some loan products, if you go over 50% or 55%, there can be pricing adjustments.

4. Escrow waivers & condo loans - This would be on conventional loans only.

5. Lock-In Period - A biggie... So many people quote 30 day locks, yet so many lenders are taking 45 to 60 days to close a loan. In my 17 years in the mortgage industry, I have found that this is one that is left out the most, when a loan officer offers a specific interest rate and explains the mortgage process. What good is my 30 day rate quote based on your closing date 60 days from now.




Summary : As I have stated many times, you need to make sure that you are working with a professional loan officer. There loan officers out there that will not ask the correct questions, or those that might put you into the wrong type of loan just because they aren't familiar with other mortgage programs. The three mortgage programs that you need a loan officer that is knowledgeable are : FHA loans, USDA loans, and VA loansMortgage Interest Rates can vary drastically based on many pieces of the puzzle, yet this needs to be explained to the consumer.











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Tim Bradford
Ohio Mortgage Banker LO.007173.000/ NMLS 250013
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Serving the Ohio Realtors and Home Buyers and Home Owners
Comment balloon 1 commentTim Bradford • June 21 2010 05:49PM


Tim.... thanks for not only reblogging this, but for mentioning the difference in loan amounts will affect interest rates also...  I meant to put that in my post, but I was interrupted in the middle of writing it.  and this has usually been one of my main pet peeves when arguing rates and points, that even many loan officers forget to mention loan amount.. thanks

jeff belonger

Posted by Jeff Belonger, The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans ( Social Media - Infinity Home Mortgage Company, Inc) almost 8 years ago

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