Rate Watch

When you become a Preferred Buyer & Borrower Client - We enroll you in our rate watch program which basically means we will notify you immediately if we get notice that rates are going to increase. However, the best protection of all is to lock your loan.

Here is a Complimentary Copy of our Valuable Special Report on  Common Loan Questions:

Common Loan Questions

The first question to always ask yourself is how long do I plan on being in my new home? If you are the average home buyer and especially first time buyers - -most likely you will be in your first home 5-7 years. Therefore, a more cost effective loan would be a 7yr arm or 7 yr balloon, or even, a 10/1 arm. These loans can save you .375% on the interest rate.

If you plan on being in your home 10 years or more, or, if you plan on keeping the property as a future rental, then a 30 year fixed rate is probably best.

Very simply, anyone who is gainfully employed can get Pre-Qualified. Pre-Qualification means you have provided basic income and debt information to determine how much of a loan you qualify for.

Pre-Approval goes a step further. You actually complete a loan application, provide current paystubs, bank statements, and any other pertinent information. This info along with your credit report is submitted to an underwriter and within 48 hours, you can receive an actual loan approval. Pre-Approval status is like cash in the bank. It gives you a stronger negotiating edge when making an offer on a home. It can mean the difference between your offer getting accepted over someone else.

That's okay. You're not alone. There are programs designed to help. Of course, each case is individual. Interest rates will be higher than standard conventional Fannie Mae, FHA programs. It all depends on the credit score and how many late payments you've had in the past 12 months. With a very low credit score and many late payments, you will most likely you will have a minimum down payment of 10% or more. Although there are programs out there that we could try- FHA for example (3% Down Required).

One point equals 1% of the loan amount. Points are charged when the interest rate on a loan is below current market rates. You are technically "buying down" the interest rate. The amount of points you pay or don't pay should be determined by the amount of time you plan on being in your home. Typically, if you will be there less than 5 years, it may not make financial sense to pay points. Additionally, if you plan on refinancing to pull cash out during that five year period, I don't recommend paying points.

Mortgage insurance is coverage for the lender against default on low down payment loans. It is required on conventional loans with less than a 20% down payment. The cost of mortgage insurance depends on the size of the loan, the loan type (fixed or adjustable), and the amount of the down payment.

It depends on the lender. Some lenders allow it to be eliminated after 12 months, while others are requiring 24 months. Call your lender to ask what their policy is to remove mortgage insurance. Be prepared to pay for an appraisal to evidence the value of your home. You must reach an equity position of 20% or more, or an 80% loan to value ratio. Appraisals run between $200-450. You must also have a clean payment history with no late mortgage payments.

When you lock an interest rate, you are securing a particular rate for a period of time, typically 15,30 or 45 days. This is a good idea in a rising interest rate environment. Once your rate is locked, it is locked. It can't be unlocked. Think of it like the stock market. You purchase a stock at a certain price. Once you've purchased that stock at that price, that's the price you get. If it goes down the next day, you don't get the revised price. In a sense, it's somewhat like gambling. Float means you have not secured a rate and you are basically betting or hoping the rates will drop. Important that you and your lender follow the market very carefully. Some lenders will require a lock deposit. Be sure and ask. In a worst case scenario, when the interest rates drop after we have locked your loan, we can always try and re-negotiate or re-submit your loan to another lender to get you the better interest rate.

This information is provided to you as a free service from Teresa Snyder’s Home & Loan Finder Hotline in hopes to aid you down the right path with real estate & mortgages. If you have questions or concerns about either real estate or home loans, please email her or call 883-3421 & press 0 to leave a message for Teresa and she will return your call within 48 hours.

We appreciate that you have taken the time and interest in our Home & Loan Finder Hotline Service and we hope the information we have provided has been useful to you. At any time you feel you need more information and/or would like to contact us- please do so by what ever method is most comfortable to you- email us at tcrealty@cdsnet.net or leave us a message and choose your personal return call time between 11 am and Noon or 6 pm to 7 pm and the number we can contact you at those times.

Sincerely,

Teresa N. Snyder

By Referral Only® Real Estate & Mortgage Consultant, GRI, ABR

P.S. By Referral Only® means that your satisfaction is my highest priority. I want to serve you in such a way that you would be delighted to tell your friends, family members, and co-workers to use my service when they have a real estate or mortgage need.

Key to your dreams since 1972 - Town & Country Realty has been helping Local Area Families realize their dreams of home ownership. It all starts with you!