As a mortgage banker since 1991, I have been asked that question thousands of times. In the past, it was a relatively easy question to answer. In the good old days of mortgage banking rates were one size fits all. In other words, if you met the criteria to be approved for a mortgage you would get the same rate whether you had perfect credit or just barely were able to obtain your mortgage approval. In addition, back in those days, your equity (down payment) and type of transaction didn’t matter like they do now.
Things That Can Change Your Rate
Some clients may qualify for rates better than those shown above because of their loan characteristics and others for rates worse. So what factors go into determining your rate? Here is just an abbreviated list:
- Credit Score
- Equity – Down Payment
- Property Type
- Loan Type (Construction – Purchase – Refinance – Rehabilitation)
- Loan Term
- Number of Units
- Occupancy
- Debt Ratios
- Closing Cost
- Escrow Accounts
- Second Mortgages
- Mortgage Insurance
- Other Criteria
I have to be honest, that is a very short list of the many factors that can have an impact on your mortgage rate. It is important to remember that each characteristic can and will have an impact on your cost of mortgage money. In order to accurately price your mortgage, it is important that we have a complete mortgage application so that we can give you detailed and accurate figures.
Long story made short, what makes up a mortgage rate can vary from one client to another and the days of the good old one size fits all mortgage rates have long since gone away. We will give you detailed and accurate figures with all of your options explained in depth to insure the mortgage you select is the best one for you, not the best one for the bank.
Thanks again for giving The Dan Moralez Mortgage Group the opportunity to serve you!
