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10 Factors that
Increase Your Mortgage Rate
10 Factors That Can and Will Increase Your Mortgage Rate.
This list of 10 factors are what you should keep in mind when thinking of buy a refinancing a home.
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ANSWER
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HOW IT AFFECTS YOUR RATE
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SURVEY SAYS:
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1. Score
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Beware - the credit score can have a large impact on rates when it ranges from 720 (good) down to 580 (subprime).
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+2%
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2. Full Doc vs. No Doc
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No Doc has become popular with the self-employed and those with hard to verify income since the borrower needs no docu-mentation: no income, no employment, no assets.
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+1%
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3. Term
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Longer loan terms (up to 40 years) have become popular since they lower the monthly payment. However, the longer the term, the higher the interest rate.
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+1/2%
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4. Down Payment
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When putting more than 10% down, the buyer will reduce their monthly payment but receive little rate benefit. However, putting down less than 10% can cause an increase in rate.
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+3/8%
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5. Origination Fee
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If you plan to keep your mortgage less than 5 years, it is finan-cially better to ask for 0% Origination Fee and pay a slightly higher rate.
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+3/8%
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6. ARM vs. Fixed
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A Fixed loan (10 to 40 years) will typically have a higher rate than that of an Adjustable loan (1 to 7 years).
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+3/8%
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7. Lock Quote
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Most quotes contain the shortest lock period which is usually 15 days because it provides the best rate. But the average real estate transaction is 30 to 40 days, so a 15 day quote is invalid.
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+1/8%
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8. Principal vs. Interest Only
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An Interest Only loan is popular because the monthly payments are lower but the rate is typically slightly higher than a Principal and Interest loan.
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+1/8%
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9. Closing Costs
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Similar to Origination Fee, the buyer can elect to reduce Closing Costs and pay a slightly higher rate.
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+1/8%
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10. Day of Week Quoted
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With the volatility in today’s market with news stories hitting every hour of every day, it causes daily and sometimes hourly rate swings. For the rate sensitive shopper, it is important to obtain all lender quotes on the same day.
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+1/8%
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10 Factors that Increase Your Mortgage Rate
Anyone looking to actually save money with their home financing can Contact Me Directly to get the process started.
On the other hand, if you are a Real Estate Professional and you would be interested in keeping more of the profits originating from all the home loans you initiate, you can Become an Associate of My Team by filling out the form on that page.
Return Home for more Valuable FREE information...!
In order to find out what your best loan options are, you can start the process by visiting my Loan Helper page and when you submit your contact information in the form on that page, that will let me know you are interested in finding out how I can help you.
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