So many questions about home loan mortgage rate quote that has no answer found. In fact many people try to find good question for unanswered question. In order to full fill those question, I write this article and may you find these article help you.
When getting your mortgage loan you should have two important documents:
1. Good Faith Estimate (GFE). This document tells you the cost of mortgage loans and a list detailing each expense.
2. Truth in Lending (til). This document will tell you the overall cost of the loan with interest rate and APR which tells you the cost of a mortgage loan you would have to pay to include prepayment.
With the above documents, you will able to compare the cost of a mortgage company to another mortgage company fees. APR is the lowest cost mortgage loans are the most to you in overall costs and pre-paids.
The lenders are required to disclose the APR before the loan or credit application is completed and in some cases referred to the cost of borrowing and this is some form or the standard of consumer protection. APR intended to make it easier to compare options and loan lenders.
4% Fixed Mortgage of 15 Years, Possible or Not?
I tried to find a good rate for a fixed mortgage and checked on Google search with 4% mortgage fixed for 15 years and I do not know if this is good or not. I try to visit some of the mortgage processors and their response was that they did not know about the source of the quotation, it seems unlikely, and they will be skeptical.
The other factors I need to consider are APR (all associated loan costs). But to answer my questions 4% APR on 15 yr fixed loan is probably not a bad figure if I can afford the loan off in 15 years. I was told that there is no way I would get 4% on 30 year fixed rate mortgage.
Then, I find out that we will get great deal of home loan offer if the seller or someone else is paying your “closing” costs! You are able to negotiate and working with a mortgage broker or wholesale person. Banks tend to charge you “retail” and you might not have the best deal. Therein market; your 30 year fixed rate should be in the 5.25% range.
Your APR will be higher than this amount, as the government requires that any finance costs over the term, be reflected in APR rate over the term period of your loan. If you get a 5.25% fixed, your APR should still be well under 6%. In my opinion, the best offer is always going to be your fixed interest rate, and least cash out of your pocket.