Mortgage Education
Don't be clueless. Learn how the mortgage business works. Avoid the hustlers. AVOID THE LOAN SHARKS! These are brokers and direct lenders who will tell you anything to get the sale and not keep your best interests in mind.
Beware of points. Points are simply prepaid interest amounts. So if you are offered to pay 1 point on a $300,000 loan that means you are paying $3,000 up-front in pre-paid interest.
Working with our company, the quotation you get involves zero points, that means no pre-paid interest. However, if you are one of those people who want to lower your monthly mortgage payment, you can "buy down" the rate by paying 1 point or even 2 points in pre-paid interest that will result in lowering your monthly payment.
Other fees. While your loan is being processed, there are processing fees that are spelled out in your Truth in Lending Statement. You will always get this estimtated closing costs sheet from our company and it will be as accurate as possible. Beware of lenders who provide you with final loan documents which contain costs figures far higher than your initial Truth in Lending Statement.
Our company also quotes interest rates that are current and in 99% of all cases are the same rates as in your final loan documents. Of course rates can change as in the case of early June, 2007. The 10 year bond rate, which is a close indicator of mortgage rates, increased dramatically in early June, 2007. The yield on these bonds affected the mortgage rates accordingly. If, in that particular instance, a borrower was in the middle of processing a mortgage, his final loan documents would reflect that rate increase.
However, in most cases, rates do not change that significantly so your final rate will be the same or within a 1/8 or 1/4 percentage of the rate that was quoted to you initially. Unless the bond market experiences a significant change, our company's quoted rate will be nearly identical to the rate you get in your final loan documents.
There is no such thing as a "no cost" mortgage. Lenders who advertise "no cost" mortgages simply give the borrower a higher interest rate and make their profits another way. We offer you a mortgage with no hidden fees with no costly surprises. We do keep your best interests in mind.
We hope this information helps you better understand the mortgage process.
We look forward to working with you.