Important Points To Consider Before Applying For a Home Loan
COVID-19 has been a crazy time for everyone! It's important to see the positive points that are coming out of it whenever possible. One of those positive points is that the mortgage rates are extremely low right now. This means it may be YOUR right time to meet with an experienced mortgage company at the Lake of the Ozarks and buy your dream house. On that note, our mortgage lenders in Osage Beach are here to give you a few important points to consider before applying for a home loan in this week's blog. MHQ - Mortgage Headquarters is here for all your mortgage needs. Give us a call at 573-302-9990 today. We are here for you.
RATE LOCK PERIODS
Interest rates fluctuate and change daily. If you have reason to believe that interest rates are moving up, you might want to lock your loan. Lenders typically charge zero to one point to lock a loan rate and points.
FEES AND POSSIBLE DISCOUNTS
This is something you should definitely ask about as it will directly affect your monthly loan payment amounts, as well as your total pay back amount over the life of the loan. Each "point" is equal to 1 percent of the loan amount. Therefore, 2 points on a $100,000 loan cost $2,000. Points "buy down" the interest rate, meaning the more points you pay, the lower the interest rate. Points are also tax-deductible, even if the seller pays some or all of the points. Origination fees may be charged by some lenders in addition to points. These are fees charged by the lender upon entering into a loan agreement to cover the cost of processing the loan.
DIFFERENT LOANS WORK BEST FOR DIFFERENT SITUATIONS
Any reputable lender will find out more information from you to better serve your needs before recommending any given loan option. Since each loan option requires a different set of stipulations to be met for approval, it's virtually impossible to say with confidence what loan would best fit your needs without gathering information first.
INTEREST RATES AND APRs
The annual percentage rate (APR) is derived by a complex calculation that includes the interest rate and all the other related lender fees divided by the loan's term. If your interest rate is adjustable, ask about its adjustment frequency, maximum annual adjustment, rate cap, index and margin.
All of us here at MHQ - Mortgage Headquarters hope that you found this blog enlightening and helpful when it comes to considering getting a home loan or not. If you have any questions, please do not hesitate to give us a call today. We are open and we encourage you to call us. You can also follow us on our social media channels listed below to stay up to date on our latest announcements.
Mortgage Headquarters of Missouri, Inc
4824 Osage Beach Parkway, Suite 1
Osage Beach, MO 65065
Office: (573) 302-9990
Toll Free: (888)799-1206
Fax: (636)648-9917
NMLS # 1229111
www.MHQMortgage.com
RATE LOCK PERIODS
Interest rates fluctuate and change daily. If you have reason to believe that interest rates are moving up, you might want to lock your loan. Lenders typically charge zero to one point to lock a loan rate and points.
FEES AND POSSIBLE DISCOUNTS
This is something you should definitely ask about as it will directly affect your monthly loan payment amounts, as well as your total pay back amount over the life of the loan. Each "point" is equal to 1 percent of the loan amount. Therefore, 2 points on a $100,000 loan cost $2,000. Points "buy down" the interest rate, meaning the more points you pay, the lower the interest rate. Points are also tax-deductible, even if the seller pays some or all of the points. Origination fees may be charged by some lenders in addition to points. These are fees charged by the lender upon entering into a loan agreement to cover the cost of processing the loan.
DIFFERENT LOANS WORK BEST FOR DIFFERENT SITUATIONS
Any reputable lender will find out more information from you to better serve your needs before recommending any given loan option. Since each loan option requires a different set of stipulations to be met for approval, it's virtually impossible to say with confidence what loan would best fit your needs without gathering information first.
INTEREST RATES AND APRs
The annual percentage rate (APR) is derived by a complex calculation that includes the interest rate and all the other related lender fees divided by the loan's term. If your interest rate is adjustable, ask about its adjustment frequency, maximum annual adjustment, rate cap, index and margin.
All of us here at MHQ - Mortgage Headquarters hope that you found this blog enlightening and helpful when it comes to considering getting a home loan or not. If you have any questions, please do not hesitate to give us a call today. We are open and we encourage you to call us. You can also follow us on our social media channels listed below to stay up to date on our latest announcements.
Mortgage Headquarters of Missouri, Inc4824 Osage Beach Parkway, Suite 1
Osage Beach, MO 65065
Office: (573) 302-9990
Toll Free: (888)799-1206
Fax: (636)648-9917
NMLS # 1229111
www.MHQMortgage.com
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