One of the worst ways to compare loans, in my opinion, is to shop the “APR” or Annual Percentage Rate. The APR is an expression of the effective interest rate that will be paid on a loan, taking into account certain one-time fees and standardizing the way the rate is expressed. While the formula can be complicated, [...]
Category | Mortgage Rates
Ever wonder why there is such a disparity from lender to lender when it comes to rates and fees? It really comes down to two things, marketing and their compensation. You see, most lenders are compensated by the companies they sell the loans to and therefore the higher the rate, the more compensation they receive. [...]
Ever wonder why you can get a better deal going through a mortgage broker than you can if you go directly to a lender? After all, the mortgage broker just turns around and sells it to a major national lender anyway? So logic dictates that cutting out the “middle man” should yield you a better deal, [...]
I am frequently asked about bi-weekly mortgage programs and whether or not they are a good choice. As my readers know, I always like to give the short and sweet answer first which is NO, they are not. But for those looking for an explanation I offer an in depth look at why they aren’t [...]
It used to be that a 720 was considered an excellent credit score, however that’s no longer the case. The new benchmark for excellent credit when it comes to mortgage rates is now a 740 or better. When we obtain a credit report, we go off the middle score (not average) when there’s only one [...]
You probably see ads all the time for “No-Cost Refinancing”, but what exactly is it and how do some lenders offer it and some don’t? The truth is, all lenders can offer it and probably do, it’s just that some use it as a marketing gimmick. A true no-cost refinance is one in which the [...]
As the Real Estate and financial markets continue to move up and down, mortgage rates can also be affected. Since mortgage rates are more closely tied to the bond markets, an up or down move in the stock market may not have the result in mortgage rates that one might expects. In fact, many times [...]
