What's the Home Mortgage Interest Rate?

Almost every day someone will call and ask, "What's the interest rate?" This is akin to calling your Ford dealer and asking, "How much is a new truck?" No one can give you an answer to either question without more information. With the mortgage question, a lender needs to know your credit score, do you have a bankruptcy, lien or judgment on your record, is it a purchase or refinance, what is the loan amount, what is the loan to value, what term do you want, is this a fixed rate loan, or adjustable rate, or interest only, or declining balance loan, how much income can you prove with tax returns or W2s, what is the source of your income, are you escrowing taxes and insurance, are you financing a single family residence, is it a detached home or condo, is it a primary residence, second home or investment property, are you left handed, are any of your children red headed and what is your age? By now your eyes have glazed over, and you may not realize the last three questions don't matter.
So, how do you find out, "What's the interest rate?" Visit your local mortgage broker and explain your needs. Before you give your social security number, ask if you can have a copy of your three file merged credit report. If they decline to give it to you, LEAVE. A reputable mortgage person will furnish you with your credit report, ask the questions above and quote you TODAY'S RATE. Now ask for a Good Faith Estimate of Closing Costs. You're only interested in the closing costs; at this point prepaid charges (interest, taxes, insurance and escrows) are not an issue. Now you can visit all the lenders your stamina can handle, and you will let them all use the same credit report. This way, your credit score will not be lowered by everyone pulling a new credit report. interest rates should not vary all that much as all mortgage people pretty much deal with the same pot of money.
Find a broker or lender who will provide a good rate, reasonable costs, and make sure you do business with someone you feel comfortable with.
If you have a mortgage question you can call me at 888-554-6755 or e-mail jack@abcmortgageal.com.