What Are The Best Mortgage Programs And Rates And How Do You Know ...

by admin

I have talked and gone over different programs and rates countless times now, and find the programs are so many and complicated, I don’t know which way to go. Please tell me if there is an official office or business that directs persons refinancing, etc with the right information and what to look for when applying. I have stopped doing anything on my home because of the conflicting offers and interest rates.

Posted under F & Q

Missy….A website I have found very useful for your situation is bankrate.com. Regardless of whether you use bankrate.com, I suggest obtaining what is called a “good faith estimate” from several mortgage brokers. To help you compare apples to apples I suggest you first determine the number of points you wish to pay on the loan (the higher the points or upfront fees…the lower the interest rate…..the lower the points…the higher the interest rate.) In any event, have all mortgage brokers or banks you which to obtain quotes from base their good faith estimate on zero points, one point or two points. One important suggestion is to obtain all the quotes on the same business day because quoted rates change ever single day. Good luck with the process.

Go with a 30 yr fixed! You will have exactly the same payment every month for 30 yrs (or until you sell the house) and you will be locking in an interest rate while they’re still near all time lows! If rates go up, you win because you’re locked in! If rates go down you can easily refinance and get a lower rate. But if you go with an ARM or interest only loan and rates go up, you will have to pay the higher rate; your rate will adjust higher and higher. Even if you refinance it’ll be at the higher rate.

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