22 Jun #60 Three things that could impact the interest rate you get on a Home refi or Purchase.
Right now interest rates are low and with all of the ads running, how can you decide who you should go and where to receive the very best interest rate?
This is a question I am being asked all the time and with many of the hidden terms, I thought you would appreciate having a few things to look for!
1) Interests rates have fees associated with getting them.
A really low interest rate could have additional charges added to “Buy Down” the rate. A good way to show is to ask what “PAR” Pricing is! By doing this you can get a closer more accurate comparison of each lender.
2) Interests change sometimes during the same day.
Every day, interest rates can change especially right now when so many things are happening in the world and our nation. It is important to get your information in and secured if you like what you are offered ASAP
3) Interest rates are lower when the loan term is shorter!
As you are looking to purchase or refinance, the shorter the loan term, the lower the rate! Home loans generally are offered as a 30 year mortgage. What you could also consider is a 20 year, 15 year or even potentially a 10 year term, customarily, the shorter the loan term, the lower the rate.
Every loan has many different ways an interest rate is determined. Do not be fooled into spending money on appraisals and other fees without a clear understanding of exactly what you will be charged!
I hope this helps and if you would like further discussion, call or e mail.