Tag: <span>Rate</span>

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LOW RATE ADS

You’ve most likely heard on the radio lenders boasting they can get you approved in minutes or days by simply going to the website and clicking a button. Is that all it takes nowadays to get approved and to go to closing? Can you close the loan right after you are approved in mere minutes?...

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CALCULATING MORTGAGE INSURANCE

If you are applying for a conventional loan and put less than 20% down on a home, the lender will require you to pay mortgage insurance. The amount of mortgage insurance will depend on your credit score, what you are purchasing (e.g. condo, single family residence, etc.), the purpose (primary residence, second home, or investment...

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BUYDOWN AS AN EXAMPLE

As interest rates fluctuate, you may see lenders offering mortgages with buydowns. This is a different type of mortgage than if you buy down the rate. I’ll explain: If you buy down the rate, you are paying extra money, usually points, to get a lower rate. The rate you buy down becomes the rate for...

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SHOULD YOU LOCK THE RATE OR FLOAT?

When a customer applies for a loan with us and we quote an interest rate, we’ll ask the customer if they want to lock it in or float the rate. To lock in the rate means that will be the rate for their loan. To float means the quoted rate could change, it could go...

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BUYING DOWN RATES

Let’s say you are looking to buy a $350,000 home with 20% down for a loan amount of $280,000. You want a 30-year fixed mortgage, and assume the rate is 4.25%; the principal and interest payment would be $1,377.43. If you paid a point, assume the rate would be 3.875% and the payment is $1,316.66....

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VARIABLE RATE LOANS AND FED POLICY

Today’s post is written by Michael Green, Commercial Loan Originator for Counsel Mortgage Group, LLC.   Reminder from our last issue:   You’ve heard of ZIRP – zero interest rate policy – from 2008-2015. Now get ready for NIRP – negative interest rate policy. Currently about $16 trillion of sovereign bonds (all countries that issue),...

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CAN YOU OBTAIN A LOAN WITHOUT PAYING ANY COSTS?

Many advertisers offer loans with no closing costs: Is this true? Can you obtain a loan without paying any costs? Well, yes you can, but you may be paying for it with a higher interest rate! There are costs associated with making a loan, such as underwriting, appraisal, credit report, escrow, title insurance and recording....