I hear the question, ‘what’s your interest rate?’ a lot. That or, ‘can you beat this rate?’ Many people believe they should qualify for and be provided with a low interest rate simply by giving their credit score.
Predatory lenders love this because they will quote a ridiculously low rate, then after the client and loan are in process, proceed to give the factors for why their rate has increased (closing costs, taxes, and insurance premiums). Many people don’t know that there are many factors that determine your interest rate, so I’ve created a list to help clarify.
1.) Duration of the interest rate Lock-In
2.) Date the rate is quoted (rates change day to day and even hour to hour)
3.) FICO Score (a FICO score is different than a Credit Report)
4.) Home Type
5.) Loan-to-Value Ratio (amount of equity)
6.) Rate & Term vs. Cash Out refinance (non-government vs governmental loan, non-insured vs insured loan, how much cash you’re taking out)
8.) Fixed vs. Adjustable
9.) Term of Loan
10.) Residency (primary vs investment)
As you can see, there’s a lot of factors that go into generating an interest rate and finding a program that will be most beneficial for you. Any mortgage expert will tell you that the lowest available interest rate does not necessarily mean it is the best loan program for you. Here at GEQ, we don’t believe in bait and switch and that’s why we thoroughly discuss our clients’ needs first before speaking with our underwriters to determine the best program and rate. For more information on rates, contact us today: 800-245-3279 or firstname.lastname@example.org.