I want a 4.875% rate!

Question: I'm shopping for the best terms I can get for a new mortgage. How do I get a rate below 5%?

Answer: The internet is loaded with mortgage offers. Make sure to review disclaimers and get key terms in writing prior to making any type of commitment. I always provide a Good Faith Estimate in writing prior to a client applying for a mortgage. In addition, we can provide a loan comparison of competing offers to compare the true benefits of loan options. Watch out for disclaimers like this. Most people do NOT qualify for the low teaser rate.

"Disclosures: Fees & charges apply and may vary by product and State. Subject to underwriting approval. Application required; not all applicants will be approved. Minimum credit score of 731 required to be eligible for advertised rate. Full documentation & property insurance required. Loan secured by a lien against your property. Consolidating or refinancing debts may increase the time and/or the total amount needed to repay your debt. Taxes & insurance extra. Terms, conditions & restrictions apply. For example, as of 02/26/09, a $250,001 loan amount financed at 4.750% (5.000% APR) with a 2.250 point discount and a 20% downpayment, would result in 360 monthly principal and interest payments of $1,304.12. Lock in fee required to secure rate. Recent rate but subject to change without notice. Rate available on loan amounts from $250,001 to (A) $417,000 (contiguous US) and (B) $625,500 (AK and HI) on owner-occupied single-family residential properties. Rates, loan products, & fees subject to change without notice. Your rate and term may vary. "


Question: Is the government going to lower rates?

Answer: The government has been making attempts to lower interest rates. One tool has been to purchase billions of dollars of mortgage back bonds. Unfortunately, rates have not responded as planned. See Blog Archive for 4% mortgage interest rate.