March 2nd, 2012 9:55 AM by Bob Rutledge
"The Best Mortgage Interest Rate" This is the goal of every new home buyer or anyone looking to refinance their current mortgage. It is important to get the best possible interest rate for your new mortgage.
We all hear the radio and television ads providing great super low interest rates that seem too good to be true. My professional opinion is that there is a very good chance that you will never get that advertised mortgage interest rate. Keep in mind that the idea behind these ads is to get the phone to ring. They have to provide the best lowest rate to get you to call, the rate is available. But, it is available to the absolutely best borrower with all the pieces falling into place to give that great rate away.
The number one question I hear from new borrowers is; 'what's your rate?', if I were a loan officer only interested in gaining your business I would provide an interest rate that would make you say.....WOW!
It is at this point that I tell the borrower that I can give them just about any interest rate they want, if they are willing not to look too closely to the paperwork. This is what happens to many borrowers, they like the interest rate so much the are willing to ignore the specifics of how they got that low interest rate.
The mortgage industry has gone through a drastic change since 2008, we have all heard about the Mortgage Meltdown but what many new borrowers have not heard is the resulting changes the industry has gone through to reduce Lender exposure to perceived risk. Lenders have overlayed loan guidelines and the pricing of interest rates with layers that end up costing the borrower more but reducing what they consider risk. Risk based interest rate pricing is all the rage with every lender, every GSE, FHA, VA, USDA, and Conventional mortgage guaranteer.
What does this mean for you as a new home buyer or someone who wants to refinance? Number 1; there is no generic mortgage interest rate, all interest rates are customized to the situation and circumstances of the borrower. This customized interest rate can vary widely from what you are expecting, either lower or higher. You cannot listen to the radio or television and think you will know what interest rate you will receive, you cannot just call a lender and ask for their interest rate. Get a customize quote and go into your new home purchase or refinance with more knowledge, it will serve you well.
There are many factors that will determine your interest rate some are obvious, credit score, loan size, term, loan program. Other factors are not so obvious, debt to income ratio, type of loan (Governmental or Conventional), even geographical location can sway interest rates.
if you would like to learn more about this or to receive a no obligation mortgage interest rate quote CLICK HERE to be taken to a new page on this website where you can request a CUSTOM MORTGAGE INTEREST RATE QUOTE.