Who Has Today’s Best Mortgage Rates?

Are you considering a new mortgage loan to purchase or refinance your home and want to know who the best mortgage lenders are? You might think that large banks offer the best mortgage rates and consider Wells Fargo or Bank of America as a matter of convenience. One of the most common mortgage misconceptions is that the best mortgage lenders all charge the same fees and that closing costs are regulated by law. Truth be told mortgage fees vary widely and the big names you see claiming to have the best mortgage rates overcharge closing costs. Here are several tips to help you find the best mortgage rates AND lender fees.

The Best Mortgage Lenders All Charge Different Fees

The fact is that banks like Wells Fargo rarely offer the lowest fees, despite what your loan officer might be telling you. The best mortgage rates from one lender might include discount points, an unnecessary expense for most homeowners. Other lenders claim to offer the best mortgage rates and overcharge their loan origination fee.

Shopping for the best mortgage rates and the lowest fees can be confusing, especially if you’re not going about it correctly. One common mortgage mistake responsible for many of your neighbors overpaying is comparing fees from different programs. It’s impossible to make an apples-to-apples comparison of the best mortgage rates and fees if you’re comparing quotes for a 30-year fixed rate to a 15-year adjustable rate mortgage.

How to Shop for the Best Mortgage Rates & Fees

Getting the best mortgage rates isn’t hard, especially if you agree to pay unnecessary discount points. The trick is getting the best mortgage rates while paying as little as possible at closing. Fortunately, using the new Good Faith Estimate makes shopping for the best mortgage rates easy, if you go about it correctly.

Here are six steps for getting the best mortgage rates without overpaying lender fees.

  1. Pick a Mortgage Program & Stick With It
  2. Deciding up front which types of mortgage loans work best for you makes shopping for the best refinance rates and fees so much easier. If you need the lowest payment that won’t change over time choose a 30-year fixed rate home loan. Do you want to build equity and pay off your mortgage as quickly as possible? Choosing a 15-year fixed-rate home loan gets the job done. The point is decide which mortgage program is best for you and don’t let a fast-talking loan officer quote their best mortgage rates across different programs.

  3. Check Your Credit Reports Before You Start Shopping
  4. When is the last time you checked your credit reports for mistakes? If you’re finding the best refinance rates lenders are quoting you are higher than what you’re seeing advertised, the likely culprit is your credit. Spend some time reviewing your credit reports for accuracy at AnnualCreidtReport.com. If you want a free credit score with no strings attached check out CreditKarma.com.

  5. Don’t Get Bamboozled By Discount Points
  6. Lenders love to quote their best mortgage rates that include discount points first. This fee is pure profit for the bank and does nothing for you as a borrower except separate you from your cash. If you’re curious about how paying discount points affects your mortgage payment there is a table on page three of your Good Faith Estimate; however, as a starting point make sure the best mortgage rates you’re being quoted do not include discount points.

  7. Protect Your Credit Shopping for the Best Mortgage Rates
  8. Some homeowners refuse to give their Social Security number out when shopping for the best mortgage rates because they think they’re protecting their credit. While it’s true your credit score will get dinged when a lender runs your credit, you’re not getting an accurate quote if they don’t. The trick to protecting your credit score when shopping for the best mortgage rates is to limit all of your lender inquiries to a 14-day (two week) period. When you do this your credit score will only get dinged for one mortgage lender’s hard inquiry on your credit report.

  9. Use The Good Faith Estimate to Get the Best Refinance Rates
  10. You already know that it’s important to request your quotes from identical mortgage programs that do not include discount points. Once you’ve got quotes from identical programs start with the best mortgage rates and compare loan origination fees. The less you pay closing on your new home loan the more benefit you’ll get from that lender’s best mortgage rates.

    Many loan officers will tell you that one percent is standard for the mortgage origination fee; however, I’ve reviewed community credit unions that charge as little as $400 to arrange your home refi. This loan origination fee can be found on page two, section A of your Good Faith Estimate.

  11. Compare The Mortgage Lender Fees on Page Two
  12. Section B on page two of your Good Faith Estimate are the fees required by individual lenders. You’ll find that closing costs on the Good Faith Estimate vary widely from one lender to the next without explanation. Don’t be afraid to question the fees found on page two of the Good Faith Estimate and haggle with loan officers. If your broker pushes back and refuses to explain the fees that you’re questioning simply move on to the next quote.

    Make sure you’re requesting quotes for the best mortgage rates from a variety of banks, lenders and credit unions. Some of the best deals I’ve found have come from those small community credit unions that you might be overlooking when shopping for your home refinance.

Invest some time shopping for the best mortgage rates and fees using these tips and you’ll save thousands of dollars on your next home loan.

Click Here For More Details…

You can learn more about getting the lowest home refinance rates from today’s best mortgage lenders by checking out my free Underground Mortgage Videos.

httpv://www.youtube.com/watch?v=be9md0A0_2c
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Here’s a quick sample to help you get the lowest home refinance rates from today’s best mortgage companies…”

6 Tips For Getting The Best Mortgage Rates

Everyone wants the best mortgage rates for their next home loan; however, the approach most people take results in overpaying thousands of dollars at closing. In fact, the fees you pay closing on your next mortgage make or break the deal you’re getting. Here are six tips for getting the best mortgage refinance rates while paying as little as possible closing on your next home mortgage loan.

How to Comparison Shop for the Best Mortgage Rates

The process of refinancing your home isn’t much different from when you took out your first mortgage. Before you can make an informed decision on which lender’s offer is best there are a few decisions you need to make. Is your goal to improve your monthly cash flow by reducing your payment? Would you rather build equity in your home and payoff that mortgage faster? Deciding what your goals are for refinancing before you start shopping for the best mortgage rates will make the process infinitely easier.

6 Steps to Lower Mortgage Refinance Rates

Have you decided whether you want to lower your payments or to pay off that mortgage loan faster? If so you’re almost ready to begin shopping for a lender and their best refinance rates.

  1. Pick a Mortgage Program & Stick With It
  2. The most important decision you can make when refinancing your home loan is which mortgage program you want/need. Do you need a fixed mortgage rate with low payments? Choosing a 30-year fixed rate loan will meet your needs. Want to pay off the loan quickly with a reasonable payment amount? Consider an Adjustable Rate Mortgage with a 15 year term. Is your credit iffy and you need an FHA streamline refinance?

    Once you’ve decided which program works best for you stick to it and don’t let a fast-talking loan officer quote mortgage refinance rates from programs that you’re not interested.

  3. Check Your Credit Reports First
  4. If you’ve already started shopping for mortgage refinance rates and you’re finding the quotes you get are higher than what you’re seeing advertised, the likely culprit is your credit score. Before you do anything else visit the government-mandated website AnnualCreditReport.com and carefully check your credit reports for mistakes. If you find errors you’ll need to dispute with each credit bureau and allow enough time for the correction to be reflected in your credit score.

    If your credit score isn’t what it should be the quickest way to boost it is by paying down the balances on your credit cards below 30% of your limit. Finally, never miss a payment…especially on your mortgage.

  5. Shop From Multiple Lenders Online
  6. Getting the best mortgage rates for your next home loan means shopping around from a variety of lenders. Also, make sure you’re requesting mortgage refinance quotes the right way. If you want accurate quotes you have to give the loan officer your Social Security number. Many homeowners refuse to provide their SSN when shopping for the best refinance rates because they think they’re protecting their credit score.

    If you shop this way you’re relying on that loan officer’s best guess as to what your interest rate will be which is almost always a waste of time. The trick to protecting your credit score while shopping for mortgage refinance rates is to limit your quotes to a two week (14-day period). If you do this you’ll only get dinged for one lender inquiry on your credit report.

    Also, make sure the quotes you receive are zero discount point quotes. If you’d like to see whether paying discount points is worthwhile there is a table on page three of your Good Faith Estimate; however, you should always start with a zero point quote when shopping for mortgage refinance rates.

  7. Compare Mortgage Refinance Rates & Fees
  8. One of the most common mistakes is focusing on getting the best mortgage rates at the expense of fees. The new Good Faith Estimate makes it very easy to comparison shop fees. Focus on page two, paying close attention to the loan origination fee and Yield Spread Premium. If you’re not already familiar Yield Spread Premium, this is a credit generated by accepting higher than market interest rates. You can find this credit, if any, listed on page 2, section A, item 2.

    The test of how good of a deal you’re getting when refinancing your home comes from how long it takes to break even recouping your out-of-pocket expenses. The quicker you break even the more benefit you’re getting from low mortgage refinance rates. Conversely, the more you pay at closing the longer it’s going to take you to break even reducing your benefit from refinancing.

    You can approximate your break-even point by adding up all your out-of-pocket expenses and dividing by the amount that your payment is going down each month. If you’re unsure what your new payment will be based on the mortgage refinance rates you’re being quoted you can use a simple mortgage calculator like this one to determine the new payment amount.

    Simple Mortgage Calculator

    Loan Amount: Years: Rate:

    Annual Taxes: Annual Insurance:

    Monthly Payment =

  9. Decide How Will You Pay For Your Next Home Loan
  10. Every home loan has fees and what you’ll need to decide is how you’re going to pay your closing costs. If you want the best mortgage rates available you’ll have to pay out-of-pocket to close.

    If you accept higher mortgage refinance rates to cover your loan origination fee and other closing costs you’re going to have a higher payment and eventually overpay for those fees. Unless you’re strapped for cash it’s almost always better to pay the mortgage origination fee and closing costs yourself.

  11. Use The Good Faith Estimate & HUD-1 Statement

  12. The Good Faith Estimate is an excellent tool for shopping for the best mortgage rates. Keep in mind however that it is only an estimate. The final word on your mortgage refinance rates and fees is found on your HUD-1 Settlement Statement. If it’s not in writing on your HUD-1 you didn’t get what the loan officer promised.

    It’s a good idea to reconcile your Good Faith Estimate with the HUD-1 Settlement Statement before closing. The same is true of your mortgage refinance rate lock. If you haven’t locked in your best mortgage rates in writing you haven’t locked.

Investing a few hours in careful comparison shopping of mortgage refinance rates and fees will save you thousands of dollars at closing and help you avoid common mistakes that tripped up your neighbors.

Click Here For More Details…

You can learn more about getting the best mortgage rates without paying lender markup or junk fees by checking out my free Underground Mortgage Videos.

httpv://www.youtube.com/watch?v=be9md0A0_2c
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Here’s a quick sample to help you get the best mortgage refinance rates without overpaying at closing…

Don’t Get Duped Into Paying Unnecessary Mortgage Fees

Most people, probably all of your neighbors, approach shopping for a home loan by focusing on getting the lowest mortgage rates. The problem is that the fees you pay make or break the deal you’re getting and choosing a lender based on mortgage rates or APR results in overpaying every time. Here are several tips to help you avoid getting duped into overpaying the mortgage fees that your neighbors paid.

Shop Mortgage Rates & Closing Costs

The origination fee and discount points you pay are the largest part of the settlement fees you control at closing. There are junk fees that find their way into your Good Faith Estimate (GFE) like processing fees and rate lock fees that you’ll want to keep an eye out for, but the most bang for your buck comes from page 2 of the Good Faith Estimate.

Take a look at Box A items 1 and 2 on the Good Faith Estimate and you’ll find the origination fee and any discount points. Spend any amount of time shopping for mortgage or refinance rates and you’ll find that lenders quote their lowest interest rates that include discount points first.

Should You Pay Discount Points?

If you’re not familiar with how discount points work don’t sweat that part of your GFE. This fee is the third item found in box two under part A on page two. Basically you pay one percent of your home loan to lower your mortgage rates by .25%.

There is a tradeoff table on page three that shows you how lowering your settlement charges affects your mortgage rates and payment amount. The more you pay at closing in discount points, the lower your monthly payments will be. If you want to change the options quoted in the tradeoff table you’ll have to request a new Good Faith Estimate from your loan officer.

Should you pay discount points? Mortgage rates are still near historical lows even though they’ve been inching up. In most cases agreeing to pay for lower mortgage rates simply raises your out-of-pocket costs unnecessarily.

The best starting point your mortgage rate shopping is to request zero point Good Faith Estimates and pay close attention to the fees found on page two.

Your Origination Fee & Yield Spread Premium

The origination fee you pay goes to the person or company arranging your home loan. It is often split between the loan officer and the lender. Negotiating loan origination fees is difficult but not impossible. Big name lenders like Bank of America or Wells Fargo don’t always have the best deals when it comes to mortgage fees like loan origination.

I’ve reviewed small, community based credit unions offering loan origination fees as low as $400. Invest some time shopping your local lenders and you can find deals like this.

What the heck is Yield Spread Premium? This is a credit generated by accepting higher than market mortgage rates. Every now and then I get a snotty comment saying “Yield Spread Premium is illegal now, you need to do your homework!”

This is simply not true. The credit or charge for your interest rate described on page 2 of the GFE is Yield Spread Premium.

This credit is how those no-fee refinance offers you see advertised work. By accepting higher than market mortgage rates you’re generating a credit from the lender used to pay your origination fee and other closing costs. Is taking higher mortgage rates to pay your closing costs worthwhile?

If you’re strapped for cash no fee mortgage loans can close the deal but you’ll always have a higher payment than if you had paid the settlement charges yourself.

How to Pay Less Closing on Your Next Home Loan

The most important aspect of shopping for your next home loan is to start by picking a program and stick with it. Do you need an FHA home loan with a 30-year fixed mortgage rate? Make sure all of your quotes are for this program and don’t let a broker confuse you by quoting a 5/1 ARM in the mix.

Limiting your quotes to identical programs is the only way to make an apples-to-apples comparison from different lenders. Invest your time comparing mortgage rates AND the fees I’ve discussed here will get you a better deal than 90% of your neighbors.

Click Here For More Details…

You can learn more about paying less for your next home loan from today’s best mortgage lenders by checking out my free Underground Mortgage Videos.

httpv://www.youtube.com/watch?v=be9md0A0_2c
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Here’s a quick sample to help you pay less at closing with today’s best mortgage lenders…

Who Has The Best Mortgage Rates?

Are you shopping for the lowest mortgage rates for your home loan but want to avoid paying unnecessary fees? Should you stick with a big lender like SunTrust Mortgage Rates or shop more from the best mortgage lenders? Did you know that the single most important aspect of your home loan in today’s market isn’t the mortgage rates? Here are several tips to help you get the best deal on your next home loan without walking away from cash on the table.

It’s All About The Fees…

If you’re in the market for mortgage refinancing and are shopping for the lowest mortgage rates you might want to reconsider your approach. If you really want lower refinance mortgage rates than your neighbors got, it’s not hard to do…if you’re willing to pay. Most homeowners focus so much on getting the lowest mortgage rates they lose sight of their closing costs and wind up paying too much for things like unnecessary discount points.

Remember discount points from when you purchased your home? Most people pay a point or two when buying their home because they simply don’t know better. Mortgage rates are hovering near sixty-year lows so paying discount points is not only unnecessary it’s a waste of your money!

Most lenders, even some credit unions like NFCU mortgage rates post tables that include discount points for no other reason that boosting their income. (at your expense) If you agree to pay discount points in exchange for lower refinance rates your out-of-pocket expenses will be higher and you’ll be gaining less benefit from today’s low mortgage rates.

Why Closing Costs Matter

Aside from the fact that closing costs are draining cash out of your pocket that you could be using for anything else, overpaying lender fees makes mortgage refinancing a losing proposition. The reason is that you must recoup these out-of-pocket expenses like the origination fee before benefiting from your new home loan. If you sell or refinance again before breaking even you’re losing money no matter how low your interest rate.

How to Approximate Your Break-Even Point

You can approximate the amount of time it’s going to take to recoup your closing costs by dividing your total out-of-pocket expenses by the amount your payment is going down each month. I say approximate because this method doesn’t take in to consideration any changes in your home loan’s term-length. Term-length is the amount of time you have to repay the mortgage (most people choose 30 years without considering the benefits of a 15-year home loan) and along with mortgage rates determines your payment amount.

If you shorten your term-length, say going from a 30-year fixed rate to a 15-year fixed rate home loan you’ll break even much more quickly than the calculation allows. Conversely, if you extend your term length say going from 15-years to 30 or worse yet 40 years, the calculation is no longer valid because you’re never going to break even.

Bottom line for today: the less you pay for mortgage refinancing the better off you’ll be. You can learn more about getting the best deal on your next home loan by checking out my free Underground Mortgage Videos.

Why Aren’t I Getting Today’s Best Refinance Rates?

If you’re shopping for the a new home loan and are wondering why you’re not getting quoted the best refinance rates that your neighbors are bragging about, you might want to turn your attention to your credit score. While it’s true that today’s best refinance rates have solidly dipped below five percent your rate could be much higher if you have less than stellar credit. Here are several of my best tips before you refi to help you get the lowest refinance rates.

Mortgage Refinance Rates Vary by Homeowner

Getting the best refinance rates in today’s market mainly comes down to your credit score. Mortgage lenders charge homeowners with lower credit scores higher interest rates, which will end up costing them thousands of dollars more than their neighbors with better credit scores.

Here’s an illustration from Washington Post showing how your credit score impacts your monthly payment and the total cost of your home. This example uses a home loan amount of $200,000 at various credit scores ranging from 620 to 850.

credit mortgage rate Why Aren’t I Getting Todays Best Refinance Rates?

As you can see having a credit score of 620 will cost you $52,171 more than your neighbor is paying for the same home loan with a credit score of 850. Don’t worry, if your credit score isn’t where you’d like it there are steps you can take to make sure you’re getting today’s best refinance rates.

Where to start improving your credit score? Visit AnnualCreditReport.com and download all three copies of your credit reports. Congress passed a law several years ago requiring the credit bureaus to give you a free copy of your credit report once per year and this is the website to get your free credit reports. The site will try to sell you a credit score; however, you don’t need to buy your credit score because your broker will give it to you when you apply for a mortgage refinance loan.

Once you’ve printed out your credit reports you’ll want to carefully review all three for errors. If you find mistakes in your credit reports each of three credit bureaus has a procedure for disputing errors. Cleaning up errors in your credit reports is going to get you the most bang for your buck when it comes to improving your credit score; however, if you don’t find mistakes there are other things you can do.

How to Get Today’s Best Refinance Rates

Maxing out your credit cards also has a negative impact on your mortgage refi. Paying down your balances as much as possible before your mortgage refinance application will help boost your credit score ensuring that number isn’t holding you back from today’s best refinance rates.

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You can learn more about getting the lowest refinance rates possible without paying lender junk fees by checking out my free Underground Mortgage Refinancing Videos.

httpv://www.youtube.com/watch?v=be9md0A0_2c
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Here’s a quick sample to get you on the path to today’s best refinance rates.