Ohio Wholesale Mortgage Rates - As a licensed mortgage broker in Ohio, I have access to wholesale mortgage interest rates. If you are looking for the best possible interest rate, feel free to call me at 888-418-4467, or reach me by email at dave@gofirstsecurity.com.
Lenders offer me wholesale interet rates so that I can pass them onto my customers to save you money both now and in the future.Mortgage interest rates are dependant and affected by what part of the country you live in. Many lenders offer different rates and different pricing based on the state you live in. Just because you may be able to qualify for a certain rate when you are buying a home in one state does not mean the rate will be the same if you were to buy a home in another state. The differences in rates and pricing between states will not usually be very much but just know that there may be a difference. When rate shopping, make sure that you are looking at the rates for your particular state and not the rates for another state or rates that are national averages. Most mortgage brokers are given wholesale rates for their specific state(s) because of the tremendous volume of business that they do with them, and they can pass these great rates on to you, the customer.
Wholesale mortgage rates are generally lower than retail mortgage rates offered by neighborhood banks. Banks are willing to offer wholesale rates through mortgage brokers because brokers perform most of the tasks associated with the loan origination process. In addition, mortgage brokers also pick up the majority of the expenses of generating loan applications, expenses such as advertisement, loan officer and processors wages, office space rents and other overhead costs. Since mortgage brokers take on the bulk of the loan generation expenses, banks are more than willing to offer significantly lower rates through brokers.
Lowest Mortgage Rate - The lowest mortgage rate is a relative term. The lowest rate that you qualify for in your home may be different than the lowest rate that your neighbor qualifies for with the exact same home. The lowest rate may not provide you with the lowest possible payment. A 15 year fixed rate loan will have lower rates than a 30 year fixed rate loan, but your payment will be lower when the loan is spread out over the 30 years.
There are many factors at play when your interest rate is determined by your mortgage broker. Your Debt to income ratio (DTI) is a major factor as is the amount of assets you have. Credit score is important in the factor but if you have a good amount of assets and good consumer payment history you may still be eligible for conforming interest rates with out a high credit score.
In the mortgage industry, Conforming mortgage interest rates are considered to be the lowest interest rate possible. Conforming loans have one set of qualifying guidelines. In order to get a home mortgage with the lowest interest rate, loan applicants must qualify with acceptable Debt-to-Income Ratio, credit history, property type, residency type, Loan-to-Value Ratio, asset reserves, employment history, etc. Borrowers are penalized with a slightly higher interest rate with each qualification criterion out of the Conforming guidelines.
Interest Rate Buy Downs - The most common buy down is the 2-1 buy down. In the past, for a buyer to secure a 2-1 buy down they would pay 3 points above current market points in order to pay a below market interest rate during the first two years of the loan. At the end of the two years they would then pay the old market rate for the remaining term.
What are discount points? - Discount points are fees paid to the lender at closing.Most times they are paid for a lower interest rate. One point is equal to 1% of the total loan amount. As an example, a $150,000 loan, one point would equal $1500. Most lenders charge between 1 and 2 points for a lower rate.
Many homebuyers will ask the seller to pay a discount point for them. That is a great way to have the seller assist you in getting a below market interest rate on your purchase.
Discount points are Tax deductible, while Origination point are not usually Tax deductible.
Discount points are paid by a borrower to obtain a lower rate on their mortgage. Discount points are generally only recommended when you plan on staying in your current mortgage for many years. Sometimes discount points may be necessary to lower the rate on your mortgage so that you meet a lenders DTI (Debt to income Ratio) guidelines.
When considering how many discount points you should pay to lower your rate, have your mortgage professional calculate the Break Even point for each option. The break-even point is the amount of time it will take for your monthly savings to add up to the cost of each additional discount point.
Discount Points are also referred to as "Prepaid Interest". You are paying your interest upfront at closing, rather then over the lifetime of the loan. If you are planning in staying in your home for a long period of time, then paying discount points up front may benefit you in the long run. Consult your mortgage professional to see if paying discount points are right for you.
Free Mortgage Interest Rate Quote - If you are currently shopping for a new mortgage to purchase a home, or to refinance your existing home, you can receive a free mortgage interest rate quote by emailing me at dave@gofirstsecurity.com.
But first there are some things you should know about receiving mortgage interest rate quotes!
Interest rates change daily and all throughout the day. With this in mind, you should try and obtain all of your mortgage interest rate quotes around the same time, and definitely within the same day. If you receive mortgage quotes at different times of the month or spread out over the course of a couple of months you will most likely receive very different rate quotes among the different lenders due to the rates changing constantly. Spreading your quotes out over time may not provide you with the best interest rates or allow you to compare rates amongst the different lenders very accurately.
Unless I have taken a complete mortgage loan application and know the specifics of your qualifications, the interest rate quote is more general information than a specific quote tailored to your situation. As mentioned, the rate quoted will only be accurate if you decide to move forward and the rate is locked that day. Shopping for a mortgage by geting numerous rate quotes can be quite frustrating. Most borrowers have found that rates vary only slightly from one lender to another. Most have found it is better to pick a mortgage agent to work with based on their professionalism and experience rather than who can shout the lowest rate.
When you get a rate quote, you should also get a Good Faith Estimate (GFE). This disclosure will break down all of the costs associated with the closing of your loan. Sometimes a great rate can come with high fees. In the end, it may be cheaper to go with a higher interest rate with lower fees.
When comparing interest rate quotes from different companies, be sure to compare the same products. Pay attention to loan specifics such as fixed rate or adjustable rate, length of loan term, full doc, stated income, or no doc, prepayment period, rate lock period, etc.
