Good morning, i'm jeff farnham.
In times of pandemic and confusion like we have experienced in the last months, it's imperative you have advisors you can trust.
There is a lot of information about interest rates and the overall state of the mortgage industry being put out by different local and national sources.
I cannot stress to you the importance of vetting the information you see before jumping headfirst.
Asking the right questions is crucial.
Your mortgage is one of the biggest financial decisions you will ever make, so make sure you work with a local and trusted mortgage advisor at jts & co.
To answer all your questions.
While rates are in a very good spot right now, we have seen some interest rate advertisements that are not altogether accurate.
Extremely low interest rates you see blasted in advertisements, without guideline information included, usually include hidden points or other fees to hook you into making a fast decision.
One in particular that i recently saw advertised, with a very low interest rate, that would have cost the borrower 6 points, or over $6,000 to their total loan amount!
While points aren't necessarily a bad thing, they may not always be necessary.
Points are fees that you can pay at the start of the loan to lower the interest rate.
Why pay additional money if it doesn't make sense for your mortgage?
There are a lot of moving parts, regulations, and details to keep in mind when discussing mortgage rates, fees, and other details of the mortgage transaction.
Most people don't realize that interest rates are not a blanket rate and one size does not fit all when it comes to rates and mortgage loan structure.
Different factors determine the interest rate you qualify for.
Until your credit profile and long- term goals are discussed, there is no way to know what you qualify for.
Generally, all mortgage lenders have access to the same rates.
But when you try "shopping" rates, you may very well be comparing apples to oranges.
You must compare rates on the same day, at the same time, on the same type loan program, with the same points; and that's virtually impossible.
Credit scores, debt to income ratio, loan type and term are factors in determining what interest rate you qualify for.
It also matters what your goals are.
If you are trying to put more money down to get out from under private mortgage insurance , your interest rate may end up being higher as well.
It's worth having a conversation with your local mortgage advisor at jts & co.
To make sure you have the correct information.
Remember, there's more to getting a mortgage than just pushing a button and that's why working local is so beneficial.
Let's sit down and discuss your current situation and long-term goals to determine what's the best path to take for your mortgage.
At j-t-s and company we want our customers' goals and needs to be taken care of throughout your mortgage journey.
Give us a call and let us help you with your homebuying or refinance plans.
J-t-s and company is local.
And experienced and we've been homeownership easy since 1996.
Thank you for joining me today, be sure to tune in next week!
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