I am asked almost daily... "How do I improve my mortgage rates?"
Actually, it usually comes in the form of, "What's your rates and fees?"
I don't blame the consumer... this is how the mortgage industry has conditioned them to respond... shop from lender A to lender B and haggle and dicker on the price and voila! You get the right deal, right? Not necessarily. Besides, not one single lender can legally say they have THE best rates. There are some things you can do to improve what rates you can qualify for however, in order to get the rate that is most appropriate for you and your situation.
With the new CFPB lending regulations, if a lender is operating honestly and within the law, the loan originator should not be making any more or less based on what rate you choose. That is how Land Home Financial operates. YOU are in control of the rate you choose, and there is no financial benefit to the originator.
"What If" I could tell you not only what today's rates are... but what tomorrow's rates are most likely headed? Wouldn't THAT be MORE valuable than someone quoting a rate sheet?
Here's one of the tools I use to help my clients are in the right place at the right time to capture the best rates for their personal situation:
You see, shopping from lender to lender is kind of like shopping for gas. There's usually very little difference from one gas station to the other one on the opposite corner. Sure you might get a better deal on the low grade gas, but you get what you pay for... and even then you're saving pennies in exchange for possible larger expenses later for car repairs... In reality, it's not the competition across the street that affects the price of gas per gallon. It's the price of oil per barrel that dictates what the wholesale cost of gas for the owners, and it us then passed along to us as consumers at the gas pump.
Warning! Here's where we get a bit technical:
The same holds true on Mortgage Rates. Rates are dictated by what's called Mortgage Backed Securities. These are financial instruments that are offered to investors, and are actively traded on Wall Street. The MBS's are backed by a group of mortgage loans in a large pool or "bucket" if you will... that all have similar loan characteristics and interest rate ranges. It is the price of these Mortgage Backed Securities (MBS) that affect the interest rates offered in the markets on a day to day basis.
Therefore, getting the best rate isn't just dependent on your credit, loan amount, income and debt ratios... and shopping from one loan originator to the next. Chances are, if you make a dozen phone calls you might end up talking to someone that is willing to tell you what you want to hear... but they might not be giving you the entire picture or what you NEED to hear.
The best way to obtain the most favorable interest rates for YOUR personal situation (in my opinion) is to work with an experienced loan originator, and one who can help you watch and time the markets to be in a position to STRIKE while the iron is hot so to speak. The mortgage rate markets can be quite volatile at times, just like we've seen the stock markets lately. We can't always beat the markets, but we can put you in the position to be able to hopefully be ready when you need it.
SO, the question is, "Are you really ready to LOCK today? Do you really want today's rates? Or would you like to know what tomorrow's rates will most likely be?"
True, none of us have a crystal ball, but by watching over 40 leading economic indicators, market updates and getting our information in a real-time basis, we can possibly stack the deck in our favor... all for YOU!
For more information, contact me and I'll give you a detailed overview!
*Mortgage rates change daily and sometimes even by the minute. A full loan application and approval by a licensed loan originator is needed to obtain a good faith estimate and confirmed rate quote. Any loan originator who is willing to quote specific rates without also obtaining a loan application, credit report and also disclosing the loan's terms and APR is violating State and Federal Laws. Please be careful in your consideration of a mortgage lender and ensure you are obtaining accurate facts. Rate Mastery is a third party service provider and not affiliated with Land Home Financial Services. Use of the information provided is voluntary and not guaranteed for accuracy by Land Home Financial Services. Personal verification and investigation is recommended.