Your Home Mortgage Rates Are Affected By Many Factors
Released on = December 27, 2005, 8:44 pm
Press Release Author = Mutual BanCorp
Industry = Accounting
Press Release Summary = Each time a borrower needs financing to either purchase or refinance a home, the mortgage lender will consider many factors in order to derive the appropriate rate. These factors can affect the type of loan financing you will ultimatly get and how much it will cost.
Press Release Body = FOR IMMEDIATE RELEASE 12/29/2005
Your Home Mortgage Rates Are Affected By Many Factors
Each time a borrower needs financing to either purchase or refinance a home, the mortgage lender has to consider many factors to derive the appropriate rate. These factors can affect the type of loan financing one will ultimately get and how much it will cost.
San Diego, California
12/29/2005
\"Many borrowers pursue their home mortgage financing with little understanding of how rates on a mortgage are derived\" says Mike Post a Real Estate Loan Specialist. These factors affecting the rate on a new mortgage can sometimes affect the rate by a point or more.
Some of the factors affecting mortgage rates are the size of the loan, the length of the loan, wether it has an adjustable rate, and how large the down payment is or how much equity is in the home after refinancing.
The size of the loan is important for borrowers with good credit. Conforming loan limits are set each year by Fannie Mae and Freddie Mac. The maximum conforming loan amount for the year 2006 is currently set for $417,000 for a single family residence.
The shorter loan term such as a 20 year or a 15 year term will significantly save the borrower thousands of dollars of interest payments over the loan term compared to a 30 year loan; but the monthly loan payments will be larger in comparison. \"The borrower should really consider getting the shorter term if they can handle the higher payment\", says Post. There are calculators at YourLoanHelp.com that will enable the prospect to determine the savings benefits of these various loan terms.
The adjustable rate mortgage is a great way to get a lower rate initially compared to a straight fixed rate loan. \"This is appealing for a borrower with a shorter time frame from a couple years up to several years\" says Post.
For loans which are less than 80% of the appraised home value the rate will be lower than for larger loans above 80%. For conforming and Alt A loans, the higher mortgage payment can also be in the form of mortgage insurance.
Some other factors that can affect the rate on a mortgage loan are the discount points and closing costs. And finally the credit quality and debt-to-income ratio will also affect the terms of a loan thru the FICO score.
This information and much more is available to the prospective borrower at YourLoanHelp.com.
Mike Post, MBA has been a loan originator for the past 5 years and has over 25 years total post graduate business experience.
For additional assistance call my Direct line at (858) 270-2149.
For More Information Contact:
Mr. Mike Post, MBA Mike@YourLoanHelp.com http://www.YourLoanHelp.com
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