What’s your interest rate?

what_your_rateI 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)

7.) Loan Program (VA, FHA, Conventional)

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 info@geqfinance.com.

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Refinancing and College Loans: New Norm?

What comes to mind when you hear the term “refinance”? Mortgages and car loans are probably the two things that come to mind right off the bat. However, student loan refinances are becoming more common.  The new bill “Bank of Students Emergency Loan Refinancing Act” allows graduates who have higher interest rates than today’s current rates  to refinance their loans.

It’s no secret that most college students are swimming in debt, but until recently no one has done much to help. Most people only see the happy side of college students. If I asked you what was going on with college students right now, you’d probably say the NCAA March Madness basketball tournament or spring break. We need to pay more attention to these college kids because they’re the ones shaping our future.

As a fairly recent college grad, I’m very excited to see something like this gain traction. Prospective college students and college students alike are both wondering whether or not a college degree is simply worth it these days. According to Google, an average college tuition in 2015 costs anywhere from $36,000 (in-state) to $92,000 (out-of-state). After factoring in the interest rates when paying off the loans, I’m not sure I want to know that final number.
It seems to some that the American dream is no longer; it’s not what it used to be.  We need to come together as a nation and show the younger generations that there’s still an American dream, and that it’s attainable. We need to give them hope and opportunity and this bill would help provide that. For more information, check out this article.

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