I would like to start this post with the preface that it is in a certain light, a vent post. Just so you are aware, though I will try to make it as informative as possible.
I work for a very large mortgage lender here in the US. My particular position isn't that of a loan originator, though I have much of the same training and qualifications to be a loan originator. As such there may be others who can shed more light on this topic, and I encourage that.
Everyday in my work I encounter at least three customers who would like to know what our interest rate is. They come in and ask something as simple as: "What's your interest rate?" or "What's your rate for a 30 year fixed?"
Now, these may sound like good questions, but here's the thing. Every single mortgage is unique. Every single person is going to get a rate based on the situation that they find themselves in.
When you are looking at rates on a mortgage lender's website they are called advertised rates. These advertised rates are going to be based on a variety of assumptions, such as: A home value of $XXX, XXX A down payment (or equity percentage in a refinance) of X% A credit score of XXX And other assumptions such as home location and presence of an escrow account.
Many lenders will include discount points in their advertised rates to make them look nicer. (if you are unfamiliar with what discount points are, just think of it as a way to buy a lower interest rate at the closing time.) (Also if you are looking to get a mortgage and are unfamiliar with what discount points are, familiarize yourself with them)
All of these factors go into a mortgage rate, and as such your own rate will most likely be quite different than the one advertised.
AGAIN: your own rate will most likely be quite different than the one advertised.
Sure, there is plenty of small script at the bottom of the rates page detailing this out, but no one seems to be able to read that.
So when you are considering obtaining a mortgage and would like to know what the rates are, contact the mortgage company and ask for "a competitive rate quote."
They most likely will need to speak with you on the phone, and that's fine, it's generally a fairly short phone call, where the agent will ask you about the home price you are considering and where the home is located, what you are planning for down payment, and a few questions about your credit profile.
When receiving your rate quote, be sure to ask if is including discount points. If it is, ask what it would be without discount points, just so you can get an objective look at the situation.
That's it! That's all there is to it.
Any other mortgage professionals who would like to throw in your two cents please feel free.
And if you're considering obtaining a mortgage, don't come to me and ask what my company's rate is. There isn't one, there's just the one that we give you.
Peace out Reddit!
TLDR Mortgage rates are based on your situation. If you're shopping rates, call the mortgage company and ask for a competitive rate quote.
Submitted August 29, 2018 at 09:14PM by HypnoticGremlin https://ift.tt/2LD3vbi
