So…what’s the interest rate today?
So…what’s the interest rate today?The question sounds easy enough. The answer, however, is more complex.By Peggy DeVilbissOn any given day, at a given time, mortgage companies can usually quote the same rates for the same programs, or at least be within 1/8 point of each other.However, the interest rate applicable to a particular person may be different from “Today’s Rate”. It is the details of the individual loan file that actually determines the interest rate for a specific borrower and property. If these details change or vary, or different information is provided to different lenders, then the interest rates being quoted will be different.The specifics of the borrower information, property information, and loan elements combine together to create a loan file. This file then determines the appropriate loan program and the applicable interest rate.For example, a mortgage loan on a Single Family Residence for a person with good credit, solid employment history and verifiable income will be at a better rate than a mortgage loan on a duplex for a person with bad credit, a new job, and unverifiable income.The loan details that can affect a program and rate are as numerous as the possible combinations of the following details:Borrower Elements: Credit, Assets, Employment, Income, Other Debt, and Property Ownership Goals.Property Elements: Condition, Appraisal, Title, Survey, Improvement Location Certificate, Acreage, House or Lot, and Property Use.Loan Elements: Occupancy, Loan Amount, Loan-to-Value, Lien Position, Purchase or Refinance, Construction Loan, Term of Loan, Fixed Rate or Adjustable Rate.As a result of the combination of the above elements, the interest rate applicable to you may be higher or lower than the current quoted rates.Mortgage brokers are educated in the various programs, and are available to help you figure out which program fits you best. The more information you give to your mortgage broker, then the more accurate the rate quote will be. As your loan elements change, so will your program and rate. You may end up with a loan program that fits you better, with a rate that’s even lower than “Today’s Rate.” Check it out!
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