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How to Find the Best Washington Mortgage Rates 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 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.

HARP Rates – How Does PMI and LPMI I Affect Refinancing? 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.

Conclusion:

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

 

Information About Rent-to-Own Purchase Transactions Information About Rent-to-Own Purchase Transactions(1)

What’s a Rent-to-Own?

Men and women that are desperate to have their own property, but cannot pay for to to get a whole new home, there’s one alternative that they can do to pay for it. It’s the alternative of rent-to-own.  The lease to own alternative is this sort of another that’s gaining reputation with customers and retailers alike. This informative article discusses the details about lease to own that can serve as a information for everyone who wishes to make it happen.

Just before everything else, I’d prefer to commence by discussing what rent-to-own is. Rent-to-own is surely an arrangement that is created between the vendor of a housing home and likely purchaser who for a single explanation or an additional is unwilling or not able to undertake and commit by themselves to some conventional revenue transaction. The arrangement will permit the likely purchaser to live in the actual estate property as being a renter for the specified level of time ahead of a last revenue contract must be consummated.

Why a rent-to-own may be right for you:

1.            They do not have the essential funds down payment for the conventional property loan. Rent-to-own arrangement allows them to maneuver into a new property as renters with a reduce down payment.

2.            They have loan problems that’s why these are not able to secure a loan.

3.            They can boost their credit score rating whenever they lease which can then capable them to avail for the larger property loan.

4.            Sellers of rent-to-own homes benefit in this sort of transaction when they promote their homes once the marketplace is down.

5.            Sellers get inactive earnings from the month-to-month payment with the renters plus they can collect a lot more money above time with a hire to individual arrangement than with a immediate sale.

How a rent-to-own transaction works:

As previously stated, Rent-to-own can be an arrangement that is produced among the vendor of your real-estate property and likely purchaser who for one particular reason or an additional is unwilling or not able to undertake and commit by themselves into a traditional profits transaction. The marketing price tag with the residence is negotiated among the 2 celebrations, as will be the date by which the buyer/renter need to finalize the sale together with the seller/landlord. It enables buyers to live in the new residence, shell out month-to-month hire for the offered timeframe, give the asked down payment plus they may have the home as their very own when all of the funds had been settled and entirely compensated.

An increasing number of individuals are finding this sort of property owning arrangement a great way to have their own ownership compared to the standard property owning procedure. It lessens the fiscal burden that’s associated with all the standard property owning.

Author Joe Karns is a seasoned mortgage banker and master of teaching you about HARP 2.0 Eligibility, is dedicated to bringing his subscribers relevant and useful information. Want to learn more about this topic?  Click here for a free consultation on how to approach the seller of a property about structuring a  Rent-to-Own.

HARP Eligibility – 2.0 Calculator 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.

HARP Eligibility Question #2 – Did your existing loan close on or before May 31st of 2009?

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.

Results:

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 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:

Though we’d all like to get our hands on the best HARP 2.0 rates, its important to know what the various “big banks” who will ultimately service these loans view as additional risk factors.  The most common loan-level price adjuster is LTV(Loan-to-Value).   There are also loan level hits for credit score, property type, and occupancy type (owner-occupied, investment property, etc.).  Lets first focus on the most common:  LTV pricing hit:

Best HARP 2.0 Rates – Price add-on’s for LTV:

Now while this new version of HARP is not supposed to limit the LTV, there are only a select few banks willing to accept any loans over 125% LTV.  In regard to pricing hits specifically, the best HARP 2.0 rates can be obtained with the lowest LTV.  For example if your home is at 80%-85% LTV, there shouldn’t be much of a pricing hit at all.  However, once you exceed the higher LTV thresholds such as 90%, 95%, 105%, and especially the 125% LTV, now you should expect to pay about .25% higher in rate, depending on the lender.  A good rule of thumb when looking for the best Harp 2.0 rates is to first ask the lender if they have the ability to complete your transaction based on your expected LTV, and second, what the pricing hit will be for your expected LTV.

During your search for the best HARP 2.0 rates, the first question should be, “can this lend actually do this deal given my property’s current LTV?” 

Best HARP 2.0 Rats – Pricing Hits Fee Structure for Credit Score and Property Type:

Other aspects to consider when searching for the best HARP 2.0 rates is credit score and property type.  As you would probably expect, with less than perfect credit comes a bit higher rate.  There are usually very little hits if you’re at 680+ but typically there will be a small hit once you get below 660.  Additionally, there is a hit for property type.  Specifically, condominiums usually come with about .125% hit to rate (75bps to price) if the LTV is over 75%.  This is an industry-wide Fannie Mae hit so plan on getting this bit higher rate if you own a condo and are over 75% LTV.

As you can see, there isn’t a one-size-fits-all rate/price for this program and its important to take all aspects into consideration when in search of the best HARP 2.0 rates.

Author Joe Karns is sales and marketing leader and master of getting you the best HARP 2.0 rates, 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 and expert advice on finding the Best Refinance Lenders.  Or, click here for a free quote on Best HARP 2.0 Rates.

Harp 2.0 – Making Home Affordable Refinance Program – Valiant Enough Effort? Harp 2.0 – Making Home Affordable Refinance Program – Valiant Enough Effort?(2)

Making Home Affordable Refinance Program

Many homeowners have been inquiring about how the new “Making Home Affordable Refinance Program”, also known as “HARP 2.0”, can benefit them.  So what can Making Home Affordable do for you?  In short, this newer version improves on the initial HARP program by removing the 125% LTV limitation.  However, there don’t seem to be any of the “big banks” who are servicing the majority of the country’s existing mortgages stepping up and actually adopting these new capabilities, unless that is, you already have your loan with them.

Making Home Affordable Refinance Program – Who gets access and it enough?

There are a few key requirements to qualify for the Making Home Affordable Refinance program.  First, your loan must currently be insured by by Fannie or Freddie and it must have been insured by them on or before 5/31/09.  Next, you must still qualify, though with somewhat looser guidelines, for this transaction just like any refinance.  Every lender is different and has come up with their own interpretation and “credit overlays” on what the government has set as the bar.  This is outlined in the next section:

Making Home Affordable Refinance – The Big Banks Credit Overlays:

Just when we thought the Government was doing some real good and stepped up with this more aggressive refinance program, we now have to deal with the stubborn “big banks” who are refusing to also take similar necessary measures to help the regular folks in this time of need.  Specifically, the “big banks” profit wildly by servicing the millions of loans that they do.  To help keep as many customer in their camp as possible, the big banks are refusing to allow you the choice of shopping around for the best deal on your HARP refinance by restricting the “unlimited LTV” capability to their one bank.  In a plain terms example:  under the Bank of America Making Home Affordable Refinance program, you can only enjoy the unlimited LTV feature of the program if you stay with Bank of America.  What does this do?  This means they can charge whatever rate they want and as long as its a bit lower than what you have now, you’ll probably accept it.  This completely takes away the competitive “open market” mentality that makes shopping for any type of lower rate work.  Similarly, if you’re with Wells Fargo, you can only enjoy the full benefits of the new program if you stay with Wells Fargo.  The same goes for Chase customers, PNC, etc.

When you compare mortgage rates for a “Making Home Affordable refinance”, the first question should be, can this lend actually do this deal given my property’s current LTV?  Don’t wast your time.  Ask if they have LTV restrictions first, and then get into the rate talks.

Making Home Affordable Refinance: What does this show us about Government help/intervention?

I’m sure there will be many homeowners who take advantage of the newer Making Home Affordable Refinance program, but with all of the “big banks” credit overlays, is this real help, or just a way for the banks to further increase their profits with all this fan fair and retain customers?  Only time will tell, but I think it will take the Government stepping in to force the big banks to really open things up for this to have any widespread benefit.

Author Joe Karns is sales and marketing leader and master of the Making Home Affordable Refinance, 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 and expert advice on finding the Best Refinance Lenders. Or, click here for a free quote on Making Home Affordable Refinance.

How to Find the Best Refinance Lenders in Today’s Market How to Find the Best Refinance Lenders in Today’s Market(1)

Best Refinance Lenders – How to 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 refinance lenders now getting the lion’s share of the market.

During your search for the best refinance lenders, 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?

Whenever you embark on a search for 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 refinance 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 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 “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 is sales and marketing leader 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:  Best Refinance Lenders

Compare Mortgage Rates Compare Mortgage Rates(32)

Compare Mortgage Rates the smart way and come out on top.

Whether you are a consumer looking to purchase a home or a seasoned homeowner looking to refinance, there are a number of key factors to consider when you compare mortgage rates.

Compare Mortgage Rates Tip#1: Consider the Source

When you compare mortgage rates, you must first consider the integrity of the lender.  Its best to compare mortgage rates of local banks, mortgage bankers, and also brokers.  Typically brokers will have the absolute lowest bare bones rates, but they are also have the least control over the fulfillment of your transaction since they are required to outsource the underwriting and sometimes also the processing.  On the other side of the spectrum, local banks as well as the “big banks” may have the most well-known brand name, however when you actually compare interest rates between them and the mortgage bankers, the actual banks usually have higher rates since all of their massive advertising costs big money which they pass on to you the consumer.  At the end of the day, the reputable mortgage bankers are usually the best mix of low rates, control over the entire process, and overall integrity.

Compare Mortgage Rates – Tip#2: Consider the costs

When you compare mortgage rates among various lenders, be sure to consider what the total cost of the transaction is, regardless of whether the fees are required to be paid out of pocket or whether they are being rolled into the new loan. Ideally, you’ll be able to negotiate the lender to pay some or all of the closing costs while also providing a competitive interest rate. Always consider the “APR” as well as the actual note rate to get the complete picture of costs associated with the transaction.

When you compare mortgage rates, many would argue the most important factor is the experience and integrity of the loan officer.

Compare Mortgage Rates – Tip#3: Consider the Loan Officer

There is much more to a great rate than the pricing and rate itself.  Due to today’s turbulent and uncertain mortgage market, there are a multitude of things that could go wrong and/or cause your mortgage process to go sideways.  To position yourself for the best chance of an efficient mortgage process, only compare mortgage rates among reputable loan officers and lenders.  That may seem obvious but its very easy to get sucked into an online ad flashing an ultra low interest rate.  Whether that rate is legitimate or not, its important to consider the integrity of the source.  The absolute lowest interest rates are usually advertised by bare bones broker shops or “refi houses” that don’t even employ actual loan officers, but instead have telemarketers and processors doing most of the handling of the loans.  Those types of lenders may actually have the lowest rate but usually offer the highest fall-out rate when it comes to missing crucial aspects of the scenario that any experienced loan officer would catch early on and usually get resolved before it becomes an issue.  In short, always consider the experience of the loan officer when you compare interest rates.

Author Joe Karns is sales and marketing leader 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

Best Refinance Lenders – How to find the pro’s? 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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