Which bank gives the best loan interest rate for a mortgage loan?
There is no one answer for this. It depends on where you are and what kind of property you are buying and the use of the property. Your credit, income and job stability also play a big factor in regards to pricing a mortgage loan. Also, consider how long you will be in this property if you are buying for your primary residence. Interest Rates are based on risk factors. So a low rate for one person, may not be the same for another with better or worse credit. Depending on your needs, you may choose an Adjustable Rate if you are only going to be in the property short term. My suggestion is to not focus so much on rate, and look more for a well qualified Loan Officer that will recommend the best product for your needs. Get referrals from trusted friends and neighbors who have been through the process. You want someone that will walk you through the process, step by step. Also, there are many types of loan programs, and the rates differ among them. What works for one person might not be the best option for you. You need to consider your long term financial goals. Loan Programs May also differ from lender to lender. Mortgage lending is an Art. You want someone that knows the ins and outs of the Underwriting guidelines. And lastly, keep in mind, that rates change daily. Some lenders will offer to drop your interest rate before closing if you lock in your rate and the rates go down. If the interest rate goes up, you keep the rate that you were locked in at if you close and fund before the expiration of the rate lock. When applying for a mortgage loan, typically lock periods are for 30–45 days. The main thing to compare when comparison shopping rates is the APR. The APR is the Annual Percentage Rate calculated with certain lender closing costs. This will give you a more balanced and true picture of the cost of the loan.
If you could redo your mortgage would you choose a 15 year mortgage or not?
Generally, I would not choose a 15 year mortgage. Many people should not. I would want to consider a few factors before wither choosing or recommending a 15 year. First, is there one or two breadwinners in the family? If the lower earning borrower can handle the 15 year on their own and it only requires 30% of their income (including taxes and insurances) then I would suggest that it might be an option for them if they want to take advantage of the usual slight discount in the rate. Otherwise, I would suggest that borrowers only commit to the lower payment required in a thirty year mortgage. Then, the 15 year becomes an optional matter.They can take the mortgage down to a 15 year in a few ways. First you could calculate the payment that would be required for a 15. Simple pay that amount (and also add taxes and insurance). You would send a note to the bank to tell them to apply the extra amount to the principal. If you don’t specifically tell them to apply to principal, they will hold the extra in an escrow account until there is enough for a payment and then they will apply it.You can also make that extra payment once a year. That is a start and usually will get your term down to about 22 years. You’ll have to add a little extra to each payment to make it down to 15 years.A better way, but one that requires a little more effort and more discipline is to invest that extra money IF you can find an investment that will guarantee to pay more than the rate that you are paying on your mortgage.The reason that it might be better to put the extra money into a separate investment is that the money is still under your control. You wont have to go to the bank and beg for money if you want to use some of it.If you want to get your house paid in 15 years, the easiest way is to make the payment that would be required for 15 even if you have a 30 year term. You can make the payment, but you won’t be obligated if money gets tight.
Which mortgage lender is the best for a first-time home buyer?
There is no such thing as a “best” mortgage lender. The best lender and more often, type of loan than the actual lender, depends on your specific situation.The following is specifically geared toward the United States.Your income and ability to prove that income, debt to income ratio, housing ratio, credit score, years on the job, cash you have for down payment and closing costs, cash reserves and whether you are legally in the country are generally the most important criteria to determine which loan(s) you may qualify for, if any. There are a whole host of other criteria but these are the main ones that usually qualify or disqualify a borrower for a particular loan.For most loans you must satisfy ALL criteria, otherwise you are disqualified from that particular loan. In some cases there are offsets where being weak in one category can be overcome by being strong in another. A common example is if you put a larger down payment you may be able to qualify for a home loan with a lower credit score than otherwise possible.Some loans, such as USDA loans are available ONLY by geographic area: specifically outside large metropolitan areas as defined by USDA. These loans have a zero down payment requirement if you meet their other criteria.Perhaps the biggest problem with home loans is the rules seem to continually change. In stable periods the interest rates change a bit and credit score requirements move up and down a little while most other criteria are reasonably constant. During a market crash the rules can change daily and entire loan products can be removed from the market; meaning the ENTIRE United States.This all boils down to borrowers needing to work with qualified loan officers familiar with the loan process and qualifying criteria. Even if you educate yourself “perfectly” you still do not have access to inside information and your opinion has no value, the lender’s underwriter is the party that decides what is and is not “good enough” to qualify. A good loan officer will know most of what works to guide you but does not have the final say in granting the loan.
Fixed Rate or adjustable rate mortgage??
The rates on both are relatively comparable right now, so it would be in your best interest to get a fixed. But, I would ask your lender to put together a couple rate/cost options and choose the one that fits you best.
Selecting a mortgage company to refinance.?
If you go with your existing Mortgage Company, they know you and know you are not shopping, so the price will be higher. You may have the right circumstances to buy a special type of mortgage, to save you money monthly (WHICH IS MOST IMPORTANT), so you should have a knowledgeable Broker and a bank that specializes in that type. Or your situation has changed or is better, so you want to study the market and shop. Do not worry a lot about one time payments like settlement or closing costs, or other costs as they are only one time payments and you do not pay these monthly. I am not saying ignor other costs, DO NOT ACCEPT GARBAGE COSTS, but if you have a good broker, pay for his work. If you save any percentage on the rate, it translates to monthly savings for the mortgage term, usually 15 or 30 years. There is always a bank who will want your business to increase theirs and will give you a slightly better rate or conditions, than the others. The TRICK is you have to find that Bank. So you go to a good, straight mortgage broker to shop the market for you and see what happens. If you feel the broker is not doing a good job, get another who WILL shop for you. There are some companies, and not just the brokers, I would not touch with your pole. They lie about the way they do business, so they can lie about anything. Check Newspaper stories over the NET in the area of your house back for 2 years, when you have a short list of banks, so you make no mistakes. You are right, rates are fixed by banks and some banks fix higher requirements than others. It is complicated and that is why Banks have Actuaries. But your credit score will help determine your rate (which if you think about it is sensible), the higher your score the lower the risk a bank faces in loaning you money. There is always someone who wants to do business and it does not cost you anything more than time, so look around. And there are companies who specialize in cleaning up your credit so your score is at it's highest. One such company I would recommend, who as far as I know is the cheapest of them all, is Ideal Credit Score at 718-502-8800.