HOW DO YOU GO ABOUT FINDING THE BEST INTEREST RATE AVAILABLE?
Why are interest rates so different from one lender to the next? Well it depends on the cost of money for that day, just like stocks the price is always changing.
That plus what fees are you being charged for that PERFECT interest rate?
Below are two quotes from two different lenders that I received on Friday 9/19/2014 ... both of them are from reputable lenders yet the interest rates are very different.
When shopping for a rate, take a look at the APR and the difference in actual rate and the APR will show if there are a lot of points and fees built into the interest rate quote.
In the examples above, for a 30 year fixed rate loan, Lender A is quoting 4.125% with an APR of 4.45% while Lender B is quoting 4.50% with an APR of 4.59%.
Lender A is charging fees for a lower rate while Lender B is offering a higher rate with less fees? Which is better and what is the difference in payment to you?
THAT DEPENDS on your available funds to cover closing costs for a higher fee to get a lower interest rate ... and in this case, on a hypothetical sales price of $425,000 the difference in payment would be $93.00 a month.
Why is all this important when you are thinking about buying a home? Talking to a lender is the very first step but many potential buyers are confused as to what all the numbers actually mean when it comes time to make that first house payment.
If you would like some guidance on who to speak with to get the information you need for your situation, I would be happy to refer you to a lender that can get you started in the right direction ... there are also several home financing programs available that DO NOT require 20% down ... so many buyers still think that they can't qualify for a home loan ... call me and let's find out together what the facts are FOR YOU!