Nonqualified Loan Rates
Mortgage rates are volatile. They change almost daily and are subject to a number of factors. Location is one of them. This holds true regardless of the loan type. Interest rates will differ from one state to the next.
If you’re planning to apply for a Nonqualified Mortgage, it’s best to keep yourself updated on the latest rate trends. There are numerous online resources that provide information on this. However, you need to be careful because not all of these are reliable. Do a little digging to make sure you’re looking at a reputable website.
Another option you can use when learning more about rates is by talking to your lender. Of course, you’d also need to ensure that the financial company is legitimate. Some insights on lender selection will be provided after a brief discussion of other rate affecting factors.
The Consumer Financial Protection Bureau has identified seven factors that affect mortgage rates.
The FICO credit score helps predict the borrower’s reliability in paying off the mortgage. A higher credit score usually means a lower interest rate.
Home prices are relative to the area in which they are located. Thus, mortgage rates are also dependent on the state or county which your desired residential property is located.
The size of the amount owed will also affect rates. If you are taking out a particularly small loan that’s payable in a year or less, chances are the interest on it will be bigger.
A lender will consider you a less risky borrower if you put down a larger amount of money at the closing. The bigger the downpayment you make, the lower the interest.
The length of time you’ll have to repay a loan is also an important consideration when calculating rates. Stretching the loan term usually leads to reduced rates.
Interest Rate Type
Interest rates come in two types — fixed and adjustable. Fixed interest rates remain constant over time. Meanwhile, adjustable rates can give you a lower rate initially and then increase after a number of years.
A wide variety of loans exists today. However, these are grouped into several broad categories. Mortgage rates will depend on a specific type of loan.
Research is Key
It’s always best to educate yourself on loans and rates even before you start shopping around. To prepare for that interview with a loan originator, research is key. Being knowledgeable helps boost your confidence and enables you to ask more questions. To a lender, this will also be an indication that you’re not just some clueless applicant that has to be spoon-fed with information. Even if their rates may not be exactly what you’re looking for they could offer a specific loan that another lender doesn’t.
You may have to make compromises, but that’s just another reason why it’s so important to shop around different lenders. Guidelines get confusing at times and lenders can sound like they’re speaking a different language when they explain their guidelines to you, but the more knowledgeable you are, the better off you will be. A reputable lender will always appreciate a client who knows what he or she wants at the onset.
How to Find the Best Deal
It’s important to talk with multiple lenders to find the best rates and options that fit your needs. Since mortgage rates are changing by the day, it’s important to find the most up to date information. You can do this by speaking with many different lenders and comparing their rates and options. This enables you to select one that would best suit your situation. Keep in mind that the rate quote you receive from your lender may not be the rate you end up with. The easiest way to save your rate quote is to lock your quote in. Many lenders will allow a borrower to lock in their rate for 15 to 45 days. Contact your lender for specific information regarding rate locks as every lender will have different rate lock terms. This is just another reason why shopping for a lender is so important. Shop different lenders and compare their rates, guidelines, and loan programs to find the one that best fits your situation.
Get Matched With a Lender
Start your lender search today! Click the link below to get matched with a qualified lender who is eager to help you get started with your home loan process and can answer any questions you may have. Get a free rate quote from a qualified lender by clicking the link below. It’s a quick and easy process and will only take a few minutes to get started, just answer a few questions and you’ll be matched with a lender within minutes. It’s quick and easy and best of all it’s free.