Dave Ramsey,
“A Twitter listener asks if it’s smart to refinance a house to have a lower mortgage payment. Dave says no and that it’s smart to refinance a house when you’re looking for a lower interest rate. “
Why are bank rates so much higher?
- Cost of buildings
- Commission to loan officer
- Personell expenses (HR, Administration, Compliance, etc)
- Cost of training
- Shareholder profits
- Marketing
Why do Interest Rates Change?
Mortgage interest rates adjust with the market. The factors that impact mortgage rates are relevant news about the economy, the Federal Reserve comments and actions with regards to increasing or decreasing the Federal Funds Rate, and the 10 Year Treasury Yield (symbol TNX).
Attributes that effect a borrowers interest rate are; credit score, loan-to-value of property, loan amount, type of loan, type of property, occupancy of property, credit delinquencies, and others.
Interest rates on the HOME page are based on the below criteria.
- Property value of $937,000
- Loan amount of $749,600
- Fico score of 780
- Primary residence or second home
- No cash out
- Single family residence
Our competitor’s rates can be found at these links
Why use Lowermortgage.net?
What are POINTS on a loan?
Points are a percentage of the loan amount as a cost for a particular rate. 1 point is equivalent to 1% of the amount financed ($500,000 loan = $5,000).
What is the difference between interest rate and APR?
The APR (annual percentage rate) is your interest rate plus certain costs. These cost’s will include;
- Points- both discount points and origination points.
- Pre-paid interest- The interest paid from the date the loan closes to the end of the month. If you close on August 10th, you will pay 21 days of pre-paid interest.
- Admin Fee
- Loan-processing fee-
- Underwriting fee-
- Document-preparation fee-
- Private mortgage-insurance
- Escrow/Settlement fee
