Rate Quotes

 

We don’t quote rates on our web site for the same reason we don’t advertise them in the paper.

 

BECAUSE IT CAN NOT BE DONE ACCURATELY…BY ANY LENDER. IT’S A SILLY GAME THAT SERVES NOBODY !

WHY?  Because interest rates change daily, if not many times during the day. Mortgage rates change just like stock market.   On top of market changes there are many pricing variables that affect the interest rate. In order to get an accurate quote, a borrower MUST discuss their situation with an experienced and knowledgeable Mortgage Consultant who knows what questions to ask to get a clear picture of the situation. Your Mortgage Consultant must understand what variables will affect the interest rate before they can accurately quote a rate. Your Mortgage Consultant can also determine if you qualify for the loan in question.  What good is a rate if you don’t qualify for the prouct?

 

The Main Variables That Go Into an Accurate Interest Rate Quote

 

  • Credit Scores
  • Loan Size (Conforming Loans, in general loan of $417,000* or lower have better rates – see “Location” below
  • Location (FHA and Conventional Loan Limits are based on County/City/MSA location) click here for chart
  • Type of Property (Condo, Single Family Home, Town Home, Log Cabin, Rural Route, Flood Plain…etc.)
  • Length of Lock (30 day locks have better pricing than 60 or 90 day locks)
  • Occupancy of the Property (Owner Occupied, Investment Property, Vacation Home…etc.)
  • Documentation Type (Full Doc, Reduced Doc, Stated Income, Etc)
  • Loan To Value Ratio (LTV) (The percentage of the loan to the value of the property)
  • Loan Size (Conforming Loans, $417,000 or lowerhave better rates that Jumbo Loans
  • Program Type (FHA or VA have different advantages and restrictions than “Conventional” loans)
  • Source of Down Payment (Gifts, savings…etc.)

 

An accurate quote over the internet is almost impossible as these quotes do not account for ALL of the variables that affect interest rates It’s like trying to sell a pair of shoes to someone without asking them what size they wear. It’s simply not realistic. The rates quoted by the typical mortgage company on their web site or in an advertisement are almost always artificially low for two main reasons:

 

1. They assume “Best Case Scenarios” of all of the variables above which may not be
part of your current situation.
2. They are usually quoted with “origination and/or discount points”. 

 

So, rates found on the internet or in the paper are rarely accurate and are usually followed by an asterisk and a bunch of fine print at the bottom of the page. They are usually a long way from reality and artificially low in an attempt to get your attention and make their phone ring.

Your Mortgage Poeple does not play this game.  Spending hours on”cold calls” explaining why the rate you saw in the newspaper is not the rate you can qualify for takes away from the time we could use to serve our existing clients who were referred to us by people that already know us, like us and trust us. And it creates mis-trust of those in our industry.

Also, our almost 100% referral based business was built on the trust of our clients and referral partners. Our clients trust that they will get the lowest possible rate and fees that their current  circumstances will allow…every time…period. We rely on that to generate referrals, not making the phone ring to drum up new business.

Finally, quoting rates (realistic or not) goes against our Referral Ethic. We provide the best rates and fees on the market with the hope that our clients will recognize that, appreciate it, enjoy our superior advice and service, work with us on ALL their loans…for life and (most importantly) refer their friends, family and associates to us for their mortgage needs. If we ever were to run an ad in the paper, it would be a message about that…not an interest rate.

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