The Not So Simple Task of Quoting Interest Rates

By
Real Estate Mortgage Broker with www.genemundt.com NMLS #216987

 

 

The Not So Simple Task of Quoting Interest Rates
 
 
 
 
    
 
Peel away the stress of mortgage financing.  Call Gene Mundt, Mortgage Lender today!     I liken Interest Rates to onions in more than a couple of ways.  Much like onions, Interest Rates have "layers".  In today's mortgage financing, a  Mortgage Lender  must weigh all the facts and peel away "layers" of information and data to find and reveal the answers to your  Interest Rate questions. 
 
     And right now with Interest Rates being at historic lows (but rising at the time of this writing), the more  you can peel away and sift through those layers of data and information, the better  Interest Rate you can get.  Interest Rates so low that they could make you cry,  just like an onion does.  Simply ask anyone that paid Interest Rates in the "teens" (or above) back in the mid-80's if the thought of receiving a 4% or lower  Interest Rate today doesn't about make them cry!  Tip: Be ready with a hankie ...
 
 
 
    Interest Rates are a big deal to everyone considering the purchase of a home or thinking about refinancing.  Rightfully so.  All want to know, "What actually goes into determining the final Interest Rate I will receive?"
 
 
    When speaking to my clients, most are aware that their credit and debt ... their  FICO scores ... play a big part in what Interest Rate they'll receive on their mortgage.  But many do not know that there are many more pieces of info and data that also contribute to the final outcome.  (Especially true, if a first-time home buyer.)
 
    What are some of those other factors that I  (as your  Mortgage Lender)  will use to determine your Interest Rate?  They can include:
 
 
 
  •  What type of property occupancy is involved?  Will it be your Primary Residence?  2nd Home?  Investment Property?
  •     What is the property type?  Is it a Single-Family Residence?  Attached?  Condominium?  PUD?  (Planned Unit Development)
  •   As a result of the above question:  How Many units are involved in the financing?  1-4?  More?
  •  What is the property's location?  State, County, City?
  •  What type of loan are you seeking?  FHAVA?  Conventional?  USDA-RD?  Etc ...
  •  Will you be paying  Discount Points?  (Fees paid at Closing, in order to obtain a lower interest rate)
  •  What type of Transaction do you seek?  Purchase?  Refinance?  (Rate/Term Refi? HARP  Refi (for  Underwater  Properties)?  Cash-Out (Loan above Balance), other) ?
  •  What amount of Reserves do you have?  (Months of Savings available for emergencies)
  •  What are your Credit Scores?  It is the MIDDLE Score that determines eligibility and loan approval.  If you are borrowing with a spouse/partner(s) ... once again, it is the lower (lowest) Middle Score of all involved, that determines eligibility.
  •  What is your Debt-to-Income ratio?  Meaning ratios of payments you make VS  Gross Monthly Income.
  •  Loan-to-ValueWhat kind of down payment are you making? 3.5%?  5%?  10%?  20%?   It CAN be reflected in the Interest Rate you receive. 
  •   If you are Refinancing, what is the amount of Equity in your home?  The Interest Rate you receive reflects the amount of Equity (expressed in terms known as Loan to Value, or LTV).
  •  Are there other factors contributing to your financial status?  If so, they are considered on a case-by-case basis.
 
 
     Whew!
 
Call Gene Mundt For a NO Obligation Mortgage Consultation today!     And, as though all of that isn't enough, let's add a bit of drama into this mix.  As the old saying goes, "timing is everything", so your Mortgage Lender now must strategically  "lock-in"  an  Interest Rate.   Like gas prices and yo-yos ... Interest Rates go up and down.  Because of this, "locking-in" and securing the most advantageous Interest Rate for a client becomes much like taking aim at a moving target.  Time to work with an expert, experienced marksman, for sure.
 
    I mean, just take a gander at all those determining factors I mention and list above.  Does it become more easy to understand WHY ... what seems on the surface to be a very simple question ... is in reality, NOT at all easy for a Mortgage Lender to answer? 
 
    The NOT so simple task of quoting Interest Rates.  If you are dreaming of buying a home in the future, get started now!  Allow yourself ample time to  thoroughly prepare for your mortgage financing.   Allow   yourself ... and your Mortgage Lender ... plenty of time for fact-finding and questions.  Truth is, it will take time to accomplish everything YOU need to do ... and all that needs to be done on your behalf. 

     It takes time and proper "timing" to seek and discover the most advantageous mortgage program and Interest Rates available to you.
 
     Please keep in mind too ... If YOU, or your clients, are in need of mortgage service and an Interest Rate quote ... it's absolutely the best time to work with an  experienced, knowledgeable mortgage lending professional.  A successful outcome for your transaction depends on it ... 
 
 
 
 
  
 
    * Hoping to buy or refinance a home in  Will County, Chicagoland, or elsewhere across the country?  Contact me  today!  I'll put my 35+ years of mortgage experience and expertise to work on YOUR behalf.
       I can be found at any of the following:
Cell/Text:    708.921.6331 
Email:  genemundt
     www.genemundt.com    
Skype:   630.219.1316 

Mobile:  m.genemundt.com

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Gene Mundt

Regional Manager - Mortgage Lender

American Portfolio Mortgage Corp.

                                                                    Personal NMLS #216987

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NMLS # 175656

 

Gene Mundt, Mortgage Lender, a Lender with 36 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking:  Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including:  The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL.  Gene Mundt, Mortgage Lender can be contacted at:  815.524.2280 or via his email: gmundt@goapmc.com.

Contact Gene Mundt, Mortgage Lender soon!

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Re-Bloggged 2 times:

Re-Blogged By Re-Blogged At
  1. Sharon Alters 08/21/2012 08:57 PM
  2. Gabe Sanders 08/27/2012 04:10 AM
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Topic:
Lending / Financial
Location:
Illinois Will County New Lenox
Groups:
WillCounty
Mortgages
1st Time Buyers
Chicago Area Real Estate BUZZ!
BananaTude
Tags:
refinancing a loan
home buyers
mortgage financing
financing
home buying
mortgage programs
interest rates
quoting interest rates

Comments 26 New Comment

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Rainmaker
1,113,565
Richie Alan Naggar Author PEARLS SERIES of books
on LIFE and LOVE plus Real Estate too!
People first then business! Ran Right Realty Riverside, Ca

Gene...I am way ahead of you..I am looking for the opportunity to come to you....Let it be so please for both of us

August 22, 2012 10:38 AM
Rainmaker
638,389
Gene Mundt
Mortgage Lender - Chicago/Chicagoland Mortgages
www.genemundt.com

Look forward to that call, Richie!  I appreciate ... greatly appreciate ... the opportunity ...

Gene

August 22, 2012 10:52 AM
Rainmaker
1,684,360
Gabe Sanders
Stuart Florida Real Estate
Martin County Residential Homes, Condos and Land Sales

Excellent information.

August 23, 2012 05:08 AM
Rainmaker
1,277,500
Joan Cox
Denver Real Estate - Selling One Home at a Time
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373

Gene, it is amazing you can call 3 different lenders for the same loan, and get 3 different rates.    

August 23, 2012 06:34 AM
Rainmaker
638,389
Gene Mundt
Mortgage Lender - Chicago/Chicagoland Mortgages
www.genemundt.com

Thanks, Gabe!  Appreciate it ...

Joan:  Much like a retailer, banks and lenders offer different mortgage programs and price their products differently.  Explains the difference in rates you will receive ... 

Gene

August 24, 2012 03:11 PM
Anonymous
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Rainmaker
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Gene Mundt

Mortgage Lender - Chicago/Chicagoland Mortgages
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