Mortgage Refinance Whats Your Rate

Mortgage Refinance: What’s Your Rate?
The almighty interest rate is​ a​ very important number,​ and quite possibly the​ most important consideration for individuals who are searching for a​ refinance loan .​
There are many qualifying factors that ultimately determine the​ interest rate that you​ will get for your particular circumstances and resulting mortgage .​
Some major qualifying factors are your credit score,​ percentage of​ equity interest you​ will utilize in​ your home,​ loan term,​ and loan type .​
Most people are aware that the​ higher the​ credit score and the​ shorter the​ re-payment term,​ the​ lower the​ rate .​
Many people are not aware of​ how much rates can change depending upon how much available equity you​ are looking to​ refinance .​
For instance,​ suppose your home has an​ appraised value of​ $100,​000.00 and you​ are looking for a​ loan of​ $80,​000.00 .​
Say that with all other qualifying factors considered,​ you​ are quoted a​ 7.5% interest rate .​
You then change your mind and want to​ finance $100,​000.00 and utilize all of​ the​ equity in​ your home .​
You are now quoted a​ 10% interest rate and feel a​ slight migraine coming on​ .​
Furthermore,​ you​ will be required to​ pay for mortgage insurance if​ you​ utilize a​ conventional bank and finance more than 80% of​ your home’s appraised value .​
This can tack on​ an​ additional .5 to​ over 1% to​ the​ effective interest rate of​ your loan .​
Where’s the​ aspirin! I​ really hate to​ do this,​ but now pretend that you​ are self-employed and didn’t realize that lenders use your income after tax deductions to​ determine whether you​ qualify for a​ fully documented loan .​
Your accountant has done a​ great job with your deductions,​ so much in​ fact that you​ show a​ relative low bottom line income figure and do not qualify for a​ Full Doc loan program .​
No problem .​
Your credit score is​ great,​ which qualifies you​ for a​ stated income loan program at​ a​ cost .​
Just add another one percent or​ more to​ your interest rate and you​ will be well on​ your way to​ the​ closing table .​
You are now quoted an​ 11% rate,​ which is​ really a​ 12% effective rate,​ and wonder what the​ heck happened to​ that 5.99% rate advertised on​ the​ website .​
Forget the​ aspirin,​ just stop the​ room from spinning!
I apologize for making the​ room spin,​ but did so to​ make a​ very important point .​
Many factors determine a​ qualifying mortgage refinance interest rate .​
Advertisements with appealing rates are great,​ but you​ may not actually get the​ rate shown in​ the​ ad .​
If you​ ever request a​ refinance quote and are given a​ rate without relaying any substantial information,​ you​ may want to​ consider checking with another source .​
Interest rates can be quoted by anyone with a​ telephone and a​ rate sheet,​ but it​ is​ advisable to​ speak with a​ customer-service focused loan originator .​
a​ good broker or​ lender will discuss your objectives for the​ loan,​ take a​ full application,​ search for the​ best available programs available,​ and relay the​ best options available to​ you​ .​
a​ seasoned loan officer will be able to​ meander through scenarios that fit your specific situation,​ find competitive current-market rates,​ and stop that room from spinning.
Mortgage Refinance Whats Your Rate Mortgage Refinance Whats Your Rate Reviewed by Henda Yesti on July 03, 2018 Rating: 5

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