The interest rates listed are a snapshot of the current market. There are several factors that will affect your actual interest rate.
- Purpose of loan (Purchase, Refinance)
- Amount of loan
- Down payment or Equity percentage
- Credit Score
- Occupancy (Residence, Investment, Vacation)
- Type of property (Single family, Condo)
- Discount Points
Therefore, advertising an accurate interest rate is impossible unless all of these factors are known. Many mortgage companies will advertise artificially low rates as a bait and switch tactic to get your foot in the door. We are happy to quote you the best interest rate possible if you provide this information. We are also happy to discuss the option of paying discount points to determine if this is a worthwhile investment for your situation.
Locking in to an interest rate is up to you the borrower. Interest rates have the ability to change every day, sometimes multiple times per day. Therefore, it is imperative that you communicate with your loan originator and develop a strategy of locking in up-front, or keeping an eye on interest rates in hopes that they improve prior to closing. There is risk or reward in selecting this option. In short, your goal is to choose the best possible day to lock-in, which is an impossible task. And beware anyone who claims they know where interest rates are headed. Yes, there are trends, but anything can happen and often does.
Why is my APR higher than my Note Rate? The Note Rate is the interest rate your payments are based on. The APR is a calculation designed to express the actual cost of borrowing money, all things considered such as closing costs and mortgage insurance. You APR should be slightly higher than your Note Rate, this means that you closing costs are low. If your APR is a great deal higher than your Note Rate, that is a sign that your closing costs are high. Something you will never experience at HomeSource. Our costs are as low as possible. We charge our clients nothing for our services. Our fee is paid by the lender we place your loan with.
