How to Find the Best Washington Mortgage RatesComments Off on How to Find the Best Washington Mortgage Rates
Finding the Best Washington Mortgage Rates:
With today’s historically competitive mortgage rates, many folks within Seattle, Tacoma, Spokane, and Vancouver appear to be asking what the best way is to obtain the best washington mortgage rates. Here are a few suggestions to assist consumers in identifying the best mortgage rates:
Broker Vs. Banker:
There can be two main types of mortgage providers to consider. The first are brokers who from a technical perspective tend not to fund the transactions using their own money, nevertheless they generally feature the greatest selection of secondary market investors to place the mortgage loans with (these “big banks” being Wells Fargo, Citibank, Chase, and GMAC just to name a few). The downside connected with a broker not utilizing their own funds to actually close your transaction is their outsourcing of essential services. This will sometimes bring about extra headaches for borrowers hoping for the easiest transaction conceivable. As opposed to brokers, mortgage bankers are similar but almost always have in-house underwriters that approve the transaction to fund and they ultimately close the mortgage loans independently which gives them the last authority in accepting closing conditions.
Understanding Cost Structures and How These Banks Bring In Money is really Crucial to Getting You the Very Best Washington Mortgage Rates
It is crucial you fully understand that Broker organizations usually have the smallest expenses which could mean the absolute lowest rates. However, a large number of buyers still shy away from them because they also commonly outsource many of the important aspects that go into getting your loan to the closing table and that can bring about some of the head aches outlined above in Tip #1. On the other hand, the “Big Investors” such as Wells Fargo, Chase, and Citi have the absolute greatest expenses and that often end up charged to to the customer in the form of undesirable rates. The Big Banks have to carry enormous on-going expenses such as billboards, tv and radio commercials, web banner advertisements, countless levels of operations, loss mitigation departments, legal departments, and the list goes on. Due to this, you can usually getgoing with the lender in the middle of the spectrum: the mortgage bankers. Mortgage bankers usually possess relatively low overhead costs however still have the control of crucial services in-house, specifically underwriting and closing departments.
You may have seen some lenders advertising and marketing no costs, especially for refinance transactions. Be cautious though because in most cases they have rolled those fees into the rate in one way or another. For instance, it should be up to you whether you’d prefer the closing fees paid at closing in cash, built into the new mortgage, or, taken care of by the mortgage lender but in exchange for a slightly increased interest rate. Characteristically with mortgage bankers that include Bridgeview Bank, they might cover the majority of or all of your closing costs and still get you a rate that is more favorable compared with any of the “big banks”.
Article author “Joe Mortgage” is a sales pioneer who is owner of hotratequote.com and is focused to delivering his subscribers with important and also valuable information. Take a look at the following url for a Zero cost refinance consulting as well as knowledgeable assistance on how to obtain the best washington mortgage rates.
15 vs 30 Year Mortgage – The Pro’s and Con’s(1)
15 vs 30 Year Mortgage
If you’re like many homeowners you’ve probably contemplated going with a 15 year mortgage vs the more common 30 year fixed program. So what are differences and I can I get a better rate by going with a shorter term? Below are some pro’s and con’s associated with the 15 vs 30 year mortgage programs:
15 vs 30 Year Mortgage – The Rate Difference:
The up side of going with a 15 vs 30 year mortgage is that the 15 year mortgage will come with a bit lower rate. For example, today the average 15 year mortgage would go for about 3.25% while its 30yr counterpart would go for 3.75%. Rates on the 15 year mortgage are lower because the lender is theoretically taking on less risk by having its money out there for a shorter period of time. As a rule of thumb, the shorter the term of the mortgage, the lower the rate will be.
15 vs 30 Year Mortgage – Monthly Payments
One important factor to consider when weighing out the pro’s and con’s of a 15 vs 30 year mortgage is the monthly payment. Payments with the 15 year mortgage are going to be much larger than the longer term since the loan repayment is spread over half the number of months (180 months vs 360 months). It’s therefore sometimes more difficult to qualify for a 15 year mortgage in regard to DTI (debt to income ratio) because you will need to have a relatively high amount of monthly income to support the larger payment associated with a 15 year mortgage vs its 30 year counterpart.
15 vs 30 Year Mortgage – Total Cost Comparison:
If you have sufficient income to support the larger payment that comes with the 15 year mortgage, it may very well be worth consideration since the total interest paid within the 360 payments associated with the 30 year mortgage is much more costly than that of the total interest paid within the 180 payments associated with the 15year mortgage. The total paid on either mortgage is shown on the TIL (Truth In Lending) document which is included in your loan application package as well as again at closing. Many consumers are shocked to see how much their home will ultimately cost by the end of the repayment term. This is perhaps the most compelling reason to consider a 15 year mortgage if you can handle the larger monthly payments.
Author “Joe Mortgage” is a mortgage industry leader who is owner of hotratequote.com and is committed to bringing readers relevant and important information. Find out more at the following link for a expert consultation on considering a 15 vs 30 year mortgage.
How Do I Get the Best Chicago Mortgage Rates?(4)
Best Chicago Mortgage Rates
With today’s historically low interest rates, many folks here in the Windy City seem to be asking how they can obtain the very best Chicago mortgage rates. Here are a few pointers to help consumers source the best deal:
Broker Vs. Banker:
Understanding Cost Structures and How These Banks’s Make Money is Important to Getting You the Best Chicago Mortgage Rates:
It’s important to understand that Broker companies typically have the lowest overhead costs which can often result in the absolute lowest rates. However, many consumers still shy away from them due to the fact that they also usually outsource many of the essential services that go into getting your loan to the closing table and that can lead to some of the headaches mentioned above in Tip#1. On the other side of the spectrum, the “Big Banks” such as Wells Fargo, Chase, and Citi have the absolute highest overhead costs and that often trickles down to the consumer in unfavorable rates. The Big Banks have massive ongoing costs including billboards, tv and radio commercials, web banner advertisements, numerous levels of management, loss mitigation departments, legal departments, and the list goes on. For this reason, you can usually get the best Chicago mortgage rates by going with the lender in the middle of the spectrum: the mortgage bankers. These guys typically have relatively low overhead costs yet still have the control of essential services under their roof, specifically underwriting and closing departments.
Closing Costs and Getting the Best Chicago Mortgage Rates:
You may see some lenders advertising “not closing costs”, especially on refinance transactions. Be careful though because usually they have built those costs into the interest rate one way or another. For example, it should be up to you the consumer whether you’d like the closing costs paid at closing in cash, rolled into the new loan, or, paid for by the lender but in exchange for a slightly higher interest rate. Typically with mortgage bankers such as Bridgeview Bank, they can cover most or all of your closing costs and still get you a rate that is lower than any of the “big banks”.
Author Joe Karns of Bridgeview Bank is a seasoned mortgage professional dedicated to bringing his subscribers relevant and useful information on how to obtain the most competitive mortgage rates. Want a free mortgage checkup? Check out the following link for some FREE expert advice on how to source the best Chicago mortgage rates.
How to Get the Best FHA Streamline Rates(17)
So you’ve had your FHA loan on your home for at least six months and now you’re eligible for an FHA streamline refinance but how do you go about getting the best FHA streamline rates?
FHA Streamline Rates and the Recent Guideline Changes:
Beginning June 11, 2012, homeowners that have an FHA mortgage that was originated prior to May 31st 2009 can qualify for a significantly lower monthly MI rate (mortgage insurance), making it all the more beneficial to refinance in light of today’s historically low mortgage rates. For those FHA mortgage that fall within this category of having closed prior to 5/31/09, the monthly MI rate is only 1 basis point or .001 rather than the significantly higher rate that is charged on newer FHA loans. Its best to fill out our free mortgage quote form to be put in touch with one of our preferred lenders who are best equipped to provide you with the best fha streamline rates.
FHA Streamline Rates – Are all lenders the same?
When in search for the best FHA Streamline Rates, you may be asking yourself whether its better to go with one of the “big banks” such as Wells Fargo, Bank of America, Chase, or even a Lending Tree type portal company. The fact is that the “big banks” generally have much higher overhead costs and therefore their rates come in and out of being competitive. Local or regional mortgage bankers such as Chicago-based Bridgeview Bank typically have very low rates and can provide the very same FHA streamline refinance as the big banks can. Because the FHA program is governed by the Federal Government, the guidelines are virtually identical regardless of which bank you originate the loan with.
Perhaps the most attractive features of the FHA streamline refinance program is that the guidelines are much more aggressive than a conventional mortgage and even that of a newly-originated purchase FHA mortgage, including no income qualification, no appraisal, and no employment verification.
In conclusion, it’s best to talk to a few different lenders and compare their interest rates, total closing costs, as well as how long it will take them to close the loan. Due to the popularity of this program in today’s market, some of the “big banks” are not taking any refinance applications with less than a “90 day rate lock”. Generally speaking, the longer your rate needs to be guaranteed for, the worse your interest rate will be. This is another factor to keep in mind when shopping around.
Author Joe Karns of Bridgeview Bank is a seasoned mortgage professional dedicated to bringing his subscribers relevant and useful information on how to compare mortgage rates. Want a free mortgage checkup? Check out Joe Karns at the following link for more a FREE refinance consultation and expert advice on getting you the best FHA streamline rates.
VA Streamline Refinance Rates – How to Get the Best Deal(1)
VA Streamline Refinance Rates – How to Make Sure You Are Getting the Best Deal
You’ve served your country with honor, now let the VA loan program honor your service as you search for the lowest VA streamline refinance rates. The VA loan program rewards service men and women by being more aggressive that conventional loans in the area of loan-to-value and credit related qualifications. Below are some primary factors to consider when comparing VA streamline mortgage rates:
VA Streamline Refinance Rates – Banks or Brokers?
One important factor to consider is whether its better to work with one of the big banks for your refinance(Wells Fargo, Chase, US Bank, etc) or whether its advantageous to work with a smaller local mortgage broker or banker such as Bridgeview Bank. The “big banks” may have a lot of flashy advertising and tv commercials promoting their VA refinance capabilities but remember, those ads are expensive and often times they are forced to pass along some of that expense to the end customer in the form of slightly higher interest rates and fees. Since smaller banks and brokers have much lower overhead cost, you may find an overall cheaper deal. Also, remember that the VA Streamline Refinance program is virtually identical no matter who you do business with, so be careful not to fall for a big bank using a flashy name to give the impression that their version of the VA program is unique. Banks both large and small can quote you VA Streamline Refinance Rates so get a quote from a variety and go with which ever you feel most confident with.
VA Streamline Refinance Rates – Closing Costs?
Another factor to consider when in search for the best VA streamline refinance rates is closing costs. Since mortgage rates are so low these days, it should be possible for the lender to pay for 100% of your closing costs. You may not end up with the absolute lowest rate, however by using this strategy you will likely still save a good amount on your monthly payment and also then not need to bring any money to closing. Be sure to ask the lenders you’re considering whether they can cover any or all of the closing costs when they are quoting you VA streamline refinance rates.
Finally, once you have narrowed the best refinance lenders down to your top two or three, and you’ve asked all the right questions, its time to compare their rates, terms, cost, and most of all: their reputation and credibility. If you grade the best refinance lenders on their credibility and experience first, you will have the best chance for a smooth and efficient refinance transaction.
Author Joe Karns of Bridgeview Bank is a seasoned mortgage professional dedicated to bringing his subscribers relevant and useful information on how to compare mortgage rates. Want a free mortgage checkup? Check out Joe Karns at the following link for more a FREE refinance consultation and expert advice on getting you the best VA streamline refinance rates.
HARP Rates – How Does PMI and LPMI I Affect Refinancing?(20)
HARP PMI – How Does PMI Affect Refinancing?
With the new HARP 2.0 program in full swing now, many folks are needing to know if they will qualify with their current mortgage insurance, both PMI(private mortgage insurance) as well as LPMI (lender paid mortgage insurance) scenarios. That being said, HARP PMI has quickly become a major question in determining HARP eligibility so we’ve put together a little Q&A:
HARP PMI Question #1 – If my current loan has PMI, will my new loan it too?
If your current (Conventional) loan has monthly PMI included, then your new loan would as well under the new HARP 2.0 program. Essentially, the PMI certificate from your existing loan is simply transferred to the new loan and you would continue paying the same amount. Please note that not all PMI companies and end lenders allow this so its best to complete our simple live rate quote form and discuss your scenario with on of our qualified lenders to see if your scenario will w0rk.
HARP PMI Question #2 – If my current mortgage has LPMI(Lender Paid Mortgage Insurance) will my new one have it?
This depends on whether your current lender paid the entire LPMI amount up front when you last closed or whether they are paying it monthly behind the scenes. If its the later of the two, then you can sometimes just transfer that way of having it paid to the new lender and pay a slightly higher rate with the new lender to offset them taking on the LPMI. However, if the LPMI was paid by your current lender all at once, then that is usually a sunk cost and you’d need to pay for LPMI again one way or another on the new loan. Still, its not too expensive to have the LPMI rolled in so be sure to ask lenders what their LPMI options are.
HARP PMI eligibility can be a tricky subject so its best to consult with one of our qualified lenders. Simply complete the free Live RateQuote form on this website to see if your scenario will work.
Question #3 – If I have to take on new LPMI with my HARP refinance because my original lender paid it all at once, how much should my new LPMI cost?
Generally speaking, if your new lender needs to roll LPMI into your rate, the rate should only be about .125% – .375% higher and then you would not be paying any monthly PMI on the new loan. The lender essentially buys out of the PMI requirement by using the extra premium they earn by charging the slightly higher rate and use that money for the PMI buy-out. The result is that you would not be required to pay monthly PMI on the new loan.
All this HARP PMI and LPMI stuff may seem a bit confusion and may would agree with you that it shouldn’t have to be this complicated. It’s best to consult with one of our qualified lenders to see if your scenario will work with the new HARP 2.0 program in relation to your loan’s PMI or LPMI.
Author Joe Karns is a seasoned mortgage banker and owner of the mortgage blog, hotratequote.com, is dedicated to bringing his subscribers relevant and useful information. Want a free mortgage checkup? Check out Joe Karns at the following link for more a FREE refinance consultation. Or, click here for a free quote and to determine if your HARP PMI scenario qualifies
HARP Eligibility – 2.0 Calculator(38)
HARP Eligibility Calculator
The new HARP 2.0 program seems to be all the rave these days as it is designed to help folks refinance who are deeply “under water”. Still, for most it is still difficult to decipher whether or not their loan and scenario qualify. So what determines HARP eligibility? Here’s a few easy questions to help you figure it out:
HARP Eligibility Question #1 – Is your loan currently owned or guaranteed by Fannie or Freddie?
An easy way to validate this first step of HARP eligibility is to check on each of their websites: Fannie: http://www.fanniemae.com/loanlookup/ and Freddie: https://ww3.freddiemac.com/corporate/ If the answer to this is YES, then you’ve passed the first question of HARP eligibility.
If the answer to this question is YES, then you’ve passed the second question of HARP eligibility. Only loans that were funded AND guaranteed/sold to Fannie or Freddie prior to 5/31/09 are eligible for HARP 2.0.
HARP Eligibility Question #3 – Have you utilized the HARP program already since June 1st of 2009?
If the answer to this question is NO, then you’ve passed the third question of HARP eligibility. The Government apparently doesn’t want you to have already taken advantage of the HARP program.
HARP Eligibility Question #4 – Have you been current on your mortgage payments for the last six(6) months AND have you had no more than one(1) 30-day late payment within the last twelve(12) months?
If you’ve answered this last two-part question as YES, then you’ve passed question #4. Borrowers must not have had more than one late payment within the last 12 months and no late payments at all during the last six months to be eligible for HARP 2.0.
HARP Eligibility Question #5 – Is your home’s mortgage within the allowable conforming loan limit for your area? ($417,000 for most areas but check the Fannie Mae website to double check what the max is in your area).
If you answered this as YES and your mortgage amount is within the allowable conforming limit for your area, then you’ve passed question #5.
HARP Eligibility Question #6 – Is your mortgage currently at 80% LTV (loan to value) or higher?
In other words, do you currently have less than 20% equity in your home based on today’s value? If so, then you’ve passed question #6.
If you’ve answered all of these question correctly then it appears as if you’ve passed and you MAY be eligible for a HARP 2.0 refiannce. You may also qualify for the “no appraisal / streamline” version which means even less headaches. To find out if you qualify for sure and what the rates/terms would be, contact a certified mortgage banker today:
Author Joe Karns is a seasoned mortgage banker and master of getting you the HARP 2.0 Eligibility, is dedicated to bringing his subscribers relevant and useful information. Want a free mortgage checkup? Check out Joe Karns at the following link for more a FREE refinance consultation. Or, click here for a free quote and to determine your HARP Eligibility.
Best HARP 2.0 Rates(3)
Best HARP 2.0 Rates
One of the top questions from homeowner’s these days seems to be, “What lender can get me the best HARP 2.0 rates on my refinance?”, but this question should actually be second to the most important factor: “What lender can even do my HARP refinance?”. Unlike most standardized mortgage programs we’ve all come to know, there are many factors that will determine which lenders can complete your transaction. There are also different “pricing hits” for various aspects of your scenario which are important to know before you start your search for the best HARP 2.0 rates. In this piece we’ll be focusing on how to best educate yourself on the potential pricing hits:
Best HARP 2.0 Rates – Loan Level Hits to Watch for:
Best Refinance Lenders – How to find the pro’s?(2)
Best Refinance Lenders – How do I find the pro’s?
During the past couple years in which the mortgage market has been in turmoil, determining who are the best refinance lenders has become a real challenge. While current interest rates are still at historic lows, the fact remains that the lending guidelines have tightened up to a degree that is unprecedented. So much, in fact, that the average loan officer has trouble keeping up with the constant guideline changes and hoping to provide a high level of customer service. This challenge is resulting in the weaker loan officers leaving the industry and the pro’s within the best lenders now getting the lion’s share of the market.
During your search, its crucial to remember that the same primary hot buttons remain unchanged: 1) Keep in mind that the lenders with the lowest rates may not be the best deal overall. Even the best refinance lenders often forget to properly disclose the fact that their apparently low rate includes “discount points”. This additional fee may be getting you what appears to be a great low rate, but you do not necessarily need to pay any additional fees to get a good rate. Always ask even the best refinance lenders to give you options and proceed carefully.
How to find the best refinance lenders?
You will find numerous lenders trying to attract you with their seemingly lucrative offers. However, you must know that not all of them can offer you the best loan. Some of the best refinance lenders’ reputable brand comes from millions of dollars they spend on expensive advertising. Those TV ads and billboards may help you recognize their brand, but it works against you in regard to their ability to get you the lowest rate. All that overhead costs money, some of which is passed down to you, the customer. The key to remember is that the best refinance lenders are not always the ones with the most well known brand name. Do your research on websites like HotRateQuote to compare mortgage rates and terms so you have all the necessary information to form an education decision.
Here are some points to consider while searching for the best refinance lenders for your your home loan:
1) Start by leveraging the power of the internet. A simple search for the best refinance lenders on online will yield thousands of results, but the key is to start with the more reputable “portal sites” such as BankRate.com, LendingTree.com, and HotRateQuote.com. Try to not be diverted by flashy-looking promotional ad banners and buzz word offers but instead try and focus on the numbers: rates, APR, total fees, etc. These websites have gotten really good and organizing the best refinance lenders’ rates and terms so check to see what the top 3-5 offers appear to be within the name loan type category.
2) Be weary of excessive fees. In most cases, the “lowest rate” offer often comes with some hidden costs, which can quickly add up since they are usually percentage-based figures tied to the loan amount. These extra costs, also known as ” junk fees”, can make your refinance a costly transaction and sometimes not even worth it anymore. These “junk fees” include but are not limited to: “processing fees, application fees, doc prep fees, courier fees for mortgage brokers, etc.” A good rule of thumb to use when considering the total cost, even with the best lenders, is “how long will it take for the proposed monthly savings to exceed the total cost of this transaction?”. Example: Lets say you stand to save $52/month but the total fees are $3572. It would take you a whopping 68 months (over 5 years) to break even! Any break even point longer than 24 months is not a good deal.
3) Think you’ve found the best deal now? Be careful, you might also want to ask what documentation is going to be required. This is a major factory in getting any refinance transaction closed these days. Some bank’s guidelines have got so ridiculous that it seems like the hurdles between you and the closing table can never be overcome. Most banks follow the same set of guidelines nowadays, all requiring the standard two years tax returns with W2’s, last two pay stubs, and last two bank statements. However, I’ve heard of some real world situations recently that you probably wouldn’t even believe. A good friend of mine was trying to get the third round of underwriting conditions satisfied when she was then told that she also needed to produce the original building permit for the apparent renovation work that was done to her kitchen from 9 years ago, when she had only owned that home for the last 5 years! This means that she was forced to take a full day off work and beg City Hall to dig up old building permit records just to satisfy the lender and get her refinance closed. Crazy, huh? But you’d be surprises how often even the “best refinance lenders” come up with these crazy underwriting conditions. The key is to always ask what documentation will be required up front.
Go with the “pros” – Go with the best refinance lenders
Finally, once you have narrowed the best lenders down to your top two or three, and you’ve asked all the right questions, its time to compare their rates, terms, cost, and most of all: their reputation and credibility. If you “go with the pro” and grade the best refinance lenders on their credibility and experience first, you will have the best chance for a smooth and efficient transaction.
Author Joe Karns of Bridgeview Bank is one of the very best best refinance lenders and is a seasoned mortgage professional dedicated to bringing his subscribers relevant and useful information. Want a free mortgage checkup? Check out Joe Karns at the following link for more a FREE refinance consultation and expert advice on finding the Best Refinance Lenders: Compare Mortgage Rates
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