| Best Mortgage Rates - So you want to know what the best rates out there are? Well there are many different variables that can affect the actual mortgage rate that you qualify for. You can shop around for mortgage rates and call hundreds of different lenders to find the best rates available but in the end it may not mean anything to you. Your credit score can affect your final interest rate, your loan purpose, property type, occupancy type, Loan to Value, type of loan, and many other factors may affect what the final rate you qualify for may be. Therefore, just because one lender is advertising the lowest rates does not mean that you will qualify for that rate. There may be other lenders out there who had a higher rate than the lowest you found but you still may have ended up with a lower rate with them after all is said and done and your final rate is calculated. It is wise to shop around with a few different lenders to find who will provide the best deal for you. However, in the end most lenders will be very close and it should come down to who you feel the most comfortable working with and who you feel you can trust the most. Contact me for a free rate quote at 703-891-4509 or email me at brian@bestvirginiahomeloans.com. Check our interest rate, then request customized mortgage rates to see how your offers compare. If you think you may have less then perfect credit always check with a mortgage broker who can originate a FHA loan for you. FHA will help borrowers with less then perfect credit secure the best mortgage rates. FHA is backed by the federal government and does not grant approvals based solely on credit scores but rather on overall credit profile! Competitive lenders can almost always offer nearly identical rates. Going with the lender that merely quotes the lowest rate is inherently flawed because not all rates come at the same price. Lenders may quote you a low rate and fail to mention the high costs associated with it. Additionally, you need to watch out for those that practice "bait and switch" tactics. Working with an honest and reputable loan officer will help you get the best mortgage rate without any surprises. Shopping for the best mortgage rate is natural in a market where rates are going down, because it often meant that the best rate meant the lowest payment. However in today's market it is much more important to identify what you need from a home loan, and if your next refinance will help you achieve your unique individual financial goals. For example, many people today are benefiting the most from lower payment options available on their new mortgages. Others want a mortgage strategy which allows them to pay off their house more quickly. No matter what your goals, it's important to recognize that there is much, much more to mortgages than rate. The biggest mistake mortgage shoppers make is that they don't understand that mortgage rates are a financial instrument similar to stocks, bonds, and mutual funds. Financial instruments are tied to Wall Street and therefore fluctuate in price daily. Mortgage rates differ day to day. To get the best rate work with a mortgage professional who understands what causes mortgage rates to change. What is amortization and how does it work? - What is amortization?
This is the lifetime of your loan. For example, most mortgages have an amortization of 30 years, meaning your mortgage will be paid off after 30 years. Some "Pay Option" loan programs allow what is called negative amortization. This is where the borrower is allowed to make a monthly payment that is less than the monthly interest charge. The difference is then added back on to the total loan balance. Obviously, a consumer could only accrue negative amortization for so long. Most lenders place a restriction of five years or 125% of the original balance before the loan recasts. When this happens, the loan returns to a regular payment schedule. There are mortgages available where the amortization period is longer then the time required to pay the mortgage back. These loans are called balloon mortgages. A balloon mortgage is a mortgage that has an amortization period longer then the amount of time you have to pay the loan back. For example a standard 30/15 balloon mortgage will have an amortization of 30 years but the loan is due in full at the end of 15 years. The majority of each payment at the beginning of an amortization loan pays for interest. As time goes on, more and more of each payment covers your principal. You are then ?amortizing? the loan. Amortization is the repayment of debt with regular installments of principal and interest. A fully amortized loan has regular equal payments that are large enough to pay all the interest up to date and pay some on the principal balance to reduce the amount owed to zero by the maturity date of the loan. |
