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Chicago Tribune:  30-year Mortgage Rates Dip to 3.62% Chicago Tribune: 30-year Mortgage Rates Dip to 3.62%(1)

Chicago Tribune:
30-year Mortgage Rates Dip to 3.62%

According to Tribune reporter, Mary Ellen Podmolik, 30 year fixed mortgage rates have dipped to new all-time lows at 3.62% on average. It is believed that this additional dip in rates is unfortunately a signal of our further slowing economy. For existing home owners and home buyers, however, this rate drop is great news. In fact, rates have inched downward in 10 of the past 11 weeks (this article was written on 7/10/12). Similarly, the average 15 year fixed rate has fallen to just 2.89% down from 3.75% one year ago.

If you are a Chicago Tribune reader like I am, always scanning ads from lenders claiming to have the absolute lowest rates, here are a few factors to consider when searching for the best mortgage lender:

Broker Vs. Banker:
At this time there are 2 major varieties of lenders to take into consideration. The first are mortgage brokers which from a technical perspective will not fund the transactions with their funds, however they typically provide the widest assortment of bank investors to put the loans with (these big investors being Wells Fargo, Citibank, Chase, and GMAC just to name a few). The side effects of a broker not utilizing their own funds to actually fund your deal is their outsourcing of underwriting. This may occasionally bring about additional issues for borrowers hoping for the smoothest deal possible. As opposed to brokers, mortgage bankers offer a similar experience but in most cases have in-house underwriters whom approve the mortgage to fund and so they ultimately close the mortgages by themselves giving them the last say in accepting closing conditions.

Understanding Price Structures and How These Types of Banks’s Advertising “zero cost” loans in the Chicago Tribune Bring In Revenue is Crucial to Obtaining The Best Rate.

It is important you fully grasp that Broker firms usually have the cheapest cost of doing business that may result in the absolute lowest rates. Even so, quite a few shoppers still frown upon brokers because they also typically use outside agencies for many of the important aspects that go into getting your loan to the closing table and that can result in a few of the head aches pointed out above in Tip Number 1. Conversely, the “Big Investors” including Wells Fargo, Chase, and Citi provide the absolute greatest overhead costs which commonly trickles down to the buyer in the form of unfavorable interest rates. The “Big Banks” have considerable ongoing costs which includes billboards, tv and radio commercials, web banner advertisements, numerous levels of administration, loss mitigation departments, legal departments, and on and on. For this reason, you can usually find the best Chicago mortgage rates within the Chicago Tribune’s Real Estate section by selecting a lender who’s characteristics rest in the middle of the spectrum:  a “mortgage banker”. Mortgage bankers traditionally possess remarkably low overhead costs yet nevertheless have the control of important services in house, specifically their underwriting and closing departments.

Author “Joe Mortgage” is a marketing and advertising innovator 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 free information on how to obtain the lowest mortgage rates like the ones you see every week in the Chicago Tribune.

How Do I Get the Best Chicago Mortgage Rates? 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:
There are two main types of lenders to consider.  The first are mortgage brokers who technically do not fund the transactions with their own funds, however they usually have the widest selection of secondary market investors to place the loans with (these investors being Wells Fargo, Citibank, Chase, and GMAC just to name a few). The downside of the broker not using their own funds to actually close your deal is their outsourcing of underwriting. Simply put, brokers typically don’t underwrite the transaction in-house and therefore you may not know of some challenges, hurdles, or additional documentation required until you get close to closing. This can sometimes result in additional headaches for borrowers hoping for the smoothest transaction possible. Unlike brokers, mortgage bankers are similar but almost always have in-house underwriters who clear the loan to close and they ultimately fund the loans themselves which give them the final say in accepting documentation, conditions, etc.

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.

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