How often do interest rates change?

Interest rates change regularly with the fluctuation of the market. The interest rates you are quoted will be good for a certain window of time. If a quote expires, you will be prompted to resubmit to receive an updated quote. Of course, once you lock or protect your rate, it will not increase as long as you close and fund your loan on or before the rate expiration date.

How can I change my rate?

After consulting with you and reviewing your credit, one of our preferred lenders can recommend a loan program for you. You can add or subtract points and see how this changes your monthly payment, and may also have the opportunity to roll your closing costs into your loan amount or interest rate. Once you select the program that best fits your financial objectives you will be presented with different rate options.

When should I start shopping for a mortgage and how do I know what I can afford?

The best time to look for a mortgage is before you look for a house. This way you’ll know exactly the amount of money you can borrow. Use our Affordability Calculator to get a feel for your estimated monthly payments and what range you should be considering. Then get pre-approved for a mortgage before shopping for a home and you’ll maximize your negotiating power. It’s free and you can typically receive your loan decision very quickly.

What factors go into determining my personalized rate?

My lenders evaluate your credit history and reward your good credit with a better rate. They also take into account your loan to value or LTV, as well as your income, your assets, the purpose of the loan and how you intend to occupy the property. Naturally, all of this is impacted by the current market conditions.

What happens if my loan does not close before the rate lock expiration date?

When you lock your interest rate, you are guaranteed to receive that rate as long as you close and fund your loan by the specified expiration date. If your loan closes and funds after this date, you are no longer guaranteed your locked interest rate. Instead, you will receive the higher of the current market rate or your locked rate. Please note that you cannot receive a lower rate by allowing your lock to expire.

What are points?

Points are a percentage of the loan amount paid at closing that affect your interest rate. For instance, on a $150,000 loan, 1 point = 1% or $1500. How it works is that if you pay points, you buy down the rate. They are itemized on your Good Faith Estimate and are typically paid at closing.

Can I receive help with closing costs or down payment money?

There are a number of options that may help you if you are looking for resources to assist you purchase a home.

First, there are current and potential future tax credits and other initiatives offered by the Federal Government to help first time home buyers, with expansion to other home buyers possible. Please ask me for more information on these programs.

Also, the percentages required for down payment can differ from lenders and based upon your unique situation. And if you meet the criteria, you may be able to roll your closing costs into either the loan amount or the interest rate.

Please contact me to review your full list of financial options.