{"id":13270,"date":"2020-03-11T00:27:54","date_gmt":"2020-03-11T06:27:54","guid":{"rendered":"https:\/\/woodriverweekly.com\/?p=13270"},"modified":"2020-03-11T00:27:54","modified_gmt":"2020-03-11T06:27:54","slug":"shopping-for-a-mortgage","status":"publish","type":"post","link":"https:\/\/woodriverweekly.com\/index.php\/2020\/03\/11\/shopping-for-a-mortgage\/","title":{"rendered":"Shopping For A Mortgage\u00a0"},"content":{"rendered":"
\"\"
Anna Mathieu
Realtor\u00ae, Associate Broker, GRI, MBA
This Year\u2019s Winner of the Windermere Cup for Outstanding Performance
Windermere Real Estate\/SV, LLC
(208) 309-1329
AnnaMathieu@Windermere.com
5b-realestate.com
To subscribe to the Better Homeowners newsletter:
tinyurl.com\/y8koftym<\/figcaption><\/figure>\n

A <\/span>lower rate will not only result in a lower payment, it will amortize the loan quicker.\u00a0A $250,000 mortgage at 4.5 percent for 30 years will have a $1,266.71 principal and interest payment.\u00a0At 4 percent, the same loan will have a $1,193.54 payment, saving $73.18 a month, and the unpaid balance would be $1,776 lower at the end of five years.<\/p>\n

Mortgage lenders tend to price their mortgages based on the credit score of the borrower.\u00a0The higher the credit score, the lower the mortgage rate.\u00a0There is an inverse relationship that the lower the credit score, the higher risk and, therefore, a higher rate is needed to balance the risk.<\/span><\/p>\n

In order to get a valid rate that will be available to you with your credit score, you need to be pre-approved. The process of making a loan application before you find a home allows the lender to verify your credit, income, and ability to repay the loan.\u00a0Lenders usually only charge the cost of the credit report for this type of service.\u00a0Be aware that pre-approval is not the same thing as pre-qualification, which is simply a loan officer\u2019s opinion.<\/span><\/p>\n

When you shop for a mortgage with multiple lenders, the credit bureaus count them as a single credit inquiry if they are done within a two-week period.\u00a0On the other hand, restrain yourself from applying for other credit, such as for cars, furniture or credit cards, until after you have closed on the purchase of your home because those inquiries can negatively affect your credit score.<\/span><\/p>\n

The Consumer Financial Protection Bureau recommends that you let lenders know that you are shopping the mortgage for the best rate and fees.<\/span><\/p>\n

Instead of going to the Internet and Googling mortgage lenders, start with recommendations for a lender from your real estate professional.\u00a0They see the good, the bad and the ugly and can save you a lot of time.\u00a0Another reliable source would be from a friend who has recently purchased a home.<\/span><\/p>\n

There are lenders who bait unsuspecting borrowers with lower rates and fees into making an application and, after critical time has lapsed, try to switch them to a different program.\u00a0By that point, many buyers feel they don\u2019t have any choice but to accept what is offered.<\/span><\/p>\n

Another confusing factor is the way that loans are priced to the public.\u00a0They are usually quoted at a rate with a certain amount of points.\u00a0A point is one percent of the amount borrowed.\u00a0An example would be a quote for a loan at 4.5 percent with 1 point or at 4 percent with 2.5 points.<\/span><\/p>\n

The points combined with the rate affect the yield the lender will earn, and you will pay.\u00a0A simple way to make this an apple-to-apple comparison is to have the lender quote the loan as a \u201cpar-value\u201d loan with no points involved.\u00a0Then, the lowest rate will produce the lowest cost to you.<\/span><\/p>\n

Another way to compare loans will be to use a financial app called\u00a0Will Points Make a Difference.\u00a0\u00a0You can plug in the rate and points to calculate the lowest yield over a projected holding period or the full term.<\/span><\/p>\n

The lenders do not want to make it easy for you to compare.\u00a0Mortgage money is a commodity and shopping will be worth the effort.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

A lower rate will not only result in a lower payment, it will amortize the loan quicker.\u00a0A $250,000 mortgage at 4.5 percent for 30 years will have a $1,266.71 principal and interest payment.\u00a0At 4 percent, the same loan will have a $1,193.54 payment, saving $73.18 a month, and the unpaid balance would be $1,776 lower […]<\/p>\n","protected":false},"author":1,"featured_media":13271,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","_pvb_checkbox_block_on_post":false,"footnotes":""},"categories":[64,38],"tags":[],"class_list":["post-13270","post","type-post","status-publish","format-standard","has-post-thumbnail","category-better-homeowners-news","category-sponsored"],"_links":{"self":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts\/13270","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/comments?post=13270"}],"version-history":[{"count":0,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/posts\/13270\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/media\/13271"}],"wp:attachment":[{"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/media?parent=13270"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/categories?post=13270"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/woodriverweekly.com\/index.php\/wp-json\/wp\/v2\/tags?post=13270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}