How to Find the Best Mortgage Interest Rates

We may not be in Colorado, but I have found that The Mortgage Experts in Denver, Colorado post amazing blogs posts on the Mortgage Industry. Many times their posts are universal to all markets. They started letting Realtors submit questions for them to answer. I think the follow is a great question (and of course answer!):

Ed's question is: "What is the best web site to look at for real-time interest rates?"

Here's the answer: There really is no good site for real-time loan rates, and here's why. Rates are posted on thousands of web sites. However, there are many adjustments to the rates that are never shown to the public. These adjustments are known as "loan level pricing adjustments" and they can affect the interest rate tremendously - sometimes by as much as a few percentage points.

Here are some examples of the things that affect rates:

• Rate lock period
• Occupancy type (primary residence, second home, or investment property)
• Amount of the loan
• The borrower's credit scores
• Amount of the down payment
• Property type (single family residence, townhouse, or condo)
• Subordinate financing (is there a second loan?)

Unless a lender asks a borrower for all of this information (and much more), they can't possibly provide an accurate quote. The web sites that list rates (real-time or not), are either lead-generating web sites that sell the borrower's contact information to multiple lenders, or bait and switch sites intended to get the borrower to call. All the large lenders, and many smaller lenders, employ these tactics to get customers.

The very best way to get an accurate rate quote is to use lenders who tell you that they cannot possibly give you an accurate rate quote without gathering the information listed above and more.


Getting a loan approved is easy - if you know what to do. The Mortgage Experts know what to do!!!

Make sure you check out our web site:
www.mtgsupportservices.com

Mortgage Rates Dip Down

Bankrate: Mortgage Rates Dip Down
RISMEDIA, November 30, 2010—Mortgage rates retreated last week, following two consecutive weeks climbing higher. The average conforming 30-year fixed mortgage rate decreased to 4.58 percent, according to Bankrate.com. The average 30-year fixed mortgage has an average of 0.40 discount and origination points.

To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.

The average 15-year fixed mortgage decreased to 3.97 percent, and the larger, jumbo 30-year fixed rate dipped as well to 5.18 percent. Adjustable rate mortgages dropped as well, with the average 5-year ARM at 3.66 percent and the average 7-year ARM falling to 3.97 percent.

The last time mortgage rates were above 6 percent was Nov. 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.58 percent, the monthly payment for the same size loan would be $1,022.90, a savings of $219 per month for a homeowner refinancing now.

SURVEY RESULTS

•30-year fixed: 4.58% -- down from 4.62% last week (avg. points: 0.37)
•15-year fixed: 3.97% -- down from 4.02% last week (avg. points: 0.32)
•5/1 ARM: 3.66% -- down from 3.71% last week (avg. points: 0.38)
Bankrate's national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.