We have a 5/1 arm mortgage. How can I look into interest rates? Does anyone have any pointers? We're first time home buyers so this is all VERY new to us! Any insite is greatly appreciated!
Hi Cindy, someone on this blog did a great job breaking down the interest rates, but unfortunately I can't recall who it is. I ended up calling our LO for detail and I called again for more detail and called again.
I wish I could break it down for you. I just understand how it works.
I do understand that your credit score dictates whether or not you will pay points or plays a role too. Check your purchase agreement and see if you have an origination fee. If you do, you will pay a fee for the lowest rate and/or you get to go with the larger fee without the points fee. Let me stop here. :-)
I'm a little confused: do you already have a variable loan and you're trying to watch rates, or are you looking to lock and you want to know what the rates are, or you're shopping for a lender and want to know how to compare? If you're already working with a lender, you should just ask them for the current rate. It's pretty normal if you're waiting to lock to ask that a lot. If you want a general picture of what rates should be or what they're doing, look at something like http://www.bankrate.com/ they have very general information right on the home page and you can look around for more specific things that are applicable to you. http://www.marketwatch.com/tools/pftools/ graphs the rates and shows which way they're going if, use them if you like their format better. I was using a tool at Bank of America that would allow you to input some basic info and purchase price, and they would spit out the monthly payment and rates, etc. I liked using that one because I also got a quick quote from them and I knew how it related to real rates I could actually get (as opposed to the teasers you often see posted online) however, the webpage looks different now and I don't know if that tool is still there, though similar things are. They are at least specific to your zip code and will give you rates without too much trouble. https://www.bankofamerica.com/home-loans/mortgage/mortgage-rates.go If you're trying to shop around for lenders I wrote a big post on that general topic way back http://dreamrome.blogspot.com/2012/11/loan-shopping-and-locking.html
Thanks Julie. We're with nvr but out lo doesn't understand how to return phone calls and emails...that's our issue now. Today's rate was 3.25 so were trying to lock in there. Thanks for your input! :)
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Hi Cindy, someone on this blog did a great job breaking down the interest rates, but unfortunately I can't recall who it is. I ended up calling our LO for detail and I called again for more detail and called again.
ReplyDeleteI wish I could break it down for you. I just understand how it works.
I do understand that your credit score dictates whether or not you will pay points or plays a role too. Check your purchase agreement and see if you have an origination fee. If you do, you will pay a fee for the lowest rate and/or you get to go with the larger fee without the points fee. Let me stop here. :-)
I'm a little confused: do you already have a variable loan and you're trying to watch rates, or are you looking to lock and you want to know what the rates are, or you're shopping for a lender and want to know how to compare?
ReplyDeleteIf you're already working with a lender, you should just ask them for the current rate. It's pretty normal if you're waiting to lock to ask that a lot.
If you want a general picture of what rates should be or what they're doing, look at something like http://www.bankrate.com/ they have very general information right on the home page and you can look around for more specific things that are applicable to you. http://www.marketwatch.com/tools/pftools/ graphs the rates and shows which way they're going if, use them if you like their format better.
I was using a tool at Bank of America that would allow you to input some basic info and purchase price, and they would spit out the monthly payment and rates, etc. I liked using that one because I also got a quick quote from them and I knew how it related to real rates I could actually get (as opposed to the teasers you often see posted online) however, the webpage looks different now and I don't know if that tool is still there, though similar things are. They are at least specific to your zip code and will give you rates without too much trouble. https://www.bankofamerica.com/home-loans/mortgage/mortgage-rates.go
If you're trying to shop around for lenders I wrote a big post on that general topic way back http://dreamrome.blogspot.com/2012/11/loan-shopping-and-locking.html
Thanks Julie. We're with nvr but out lo doesn't understand how to return phone calls and emails...that's our issue now. Today's rate was 3.25 so were trying to lock in there. Thanks for your input! :)
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