Before you chase the lowest interest rate for your next mortgage, consider a few tips form a pro!
Be wary of comparing only APRS
The annual percentage rate (APR) expresses the total cost of interest AND fees as an interest rate over the full term of a loan. The problem is, most people pay fees up front and have their loan for far less than the full terms. This makes the APR inaccurate.
Insider Tip:
- Compare loan costs and monthly payments separately for a better understanding of exactly what you'll pay and when.
- If you plan to sell or refinance in a few years, any savings from a lower rate may not make up for high upfront fees.
Be wary of Advertised Interest Rates:
Advertisements often reflect the lowest rate available only for a very limited time and only to those with high credit scores and large down payments. Many factors, including your property type, down payment, credit, time to close and more, will impact your actual rate.
Insider Tip:
- An EHL Loan Officer will ask the right questions to help you access the optimal rate and cost combination for your specific scenario.
The Fed Does Not Set Mortgage Rates
The media dutifully reports policy rate adjustments by the Federal Reserve Board, but mortgage rates do not change in tandem. They will more often more in advance of Fed Announcements.
Insider Tip:
- Mortgage professionals follow the mortgage market every day and are a better source than the media for anticipated and up-to-the-minute rate information.
Bottom Line:
A no-obligation chat with an EHL Loan Officer can save you money! When you're ready to take the next step, we are happy to consult with you to devise a plan for you and your transaction. Give us a call 833-245-1234.
