Creatures crawl in search of blood. To terrorize y’all’s neighborhood This is Dan on your inside team at Growella. It’s Friday, July 13, 2018. Get ready. It’s today’s Mortgage Minute-and-a-Half. The person who named it “belly button” probably had an outie, and the person who thought they’d get that Freddie Mac-published probably got disappointed. Because the government-backed mortgage group released the results of its most recent mortgage rate survey Thursday and showed thirty-year fixed rate mortgage rates at 4.53 percent, fifteen-year fixeds at 4.02, and 5-year ARMs at 3.86. But, nobody actually gets those rates my dudes
because they are not real. They’re composites based on a particular set of circumstances that match up with absolutely not a single person in the world. The Freddie Mac survey is based on a hypothetical borrower, one who has top-tier credit, who is buying a home and not refinancing one, whose home is a standalone, one-unit property, who plans to live in the house full-time, who’ using a conventional mortgage to finance not FHA or USDA, whose loan size isn’t jumbo or high-balance, who is making a down payment of twenty percent at least, and who wants to pay discount points plus mortgage closing costs to their lender as part of the purchase.
And, that’s a big list but let’s just say,
hey, maybe you do check all the boxes. Well, the survey still doesn’t apply because its results are an average of data from 50 states and the capitol and mortgage rates don’t work like that — they’re priced locally. So, Freddie Mac’s survey? It’s great for economists and policy-makers but not for you as a human. You want accurate, bona fide mortgages rate quotes, in real-time.
To get that, skip the surveys. Get with a actual mortgage lender. It’s Friday the 13th and mortgage rates are
anything but scary. They’re looking good today. Interest rates for conventional, FHA, VA,
USDA, and jumbo loans — everything’s lower as compared to earlier in the week. And that’s good. Just remember that mortgage rates are personalized and more than a dozen factors go into a rate quote including loan size, property type, credit score. How you pay your closing costs matters, too. Pay discount points and get access to lower rates. Take your lender’s zero-closing cost option and you’ll get a slightly higher rate.
Actual Mortgage Application
There’s no path that work best for everyone so talk to two or more lenders and comparison shop your offers. Shoppers who shop are shopper who save. People who can’t distinguish between etymology
and entomology bug me in ways I just can’t put into words. The same way mortgage lenders get bugged when consumers confuse pre-qualifications for pre-approvals. Pre-qualifications are a nothing. An empty. A piece of paper that proclaims a person can purchase a property at a particular price. Nothing goes into them. You could write one, I could write one, a cat could write one if it had opposable thumbs. And that’s why sellers throw them out. Pre-qualifications don’t say anything. Like every Radiohead song from the last fifteen years. What you really need is a pre-approval. A pre-approval has meaning. It’s the product of an actual mortgage application with an actual mortgage lender and it signals to sellers that “Yes, I’m a person eligible to buy your house.” And sellers like that.
They know that pre-approvals are vetted, and verified, and they won’t accept offers without them. But, there’s also a second reason to get pre-approved, too. It’s because mortgage loans change over time. Borrower options vary and getting pre-approved gets you talking with a person who can walk you through what’s new. You do this once or twice every ten years. Your lender does it daily. There’s a lot you can learn to get up to speed. So, if your plans for this year or 2019 include the purchase of a home — first-time or repeat — talk to a lender and get that pre-approval. It’s the first step toward buying a home. Growella does timely and relevant mortgage news three times weekly and you can visit the site at Growella dot com for more excellent
mortgage and real estate news.
Go on and click the like button. Have a great weekend everyone..