MHQ - Mortgage HeadQuarters

As mortgage rates fluctuate throughout the year, borrowers may be wondering what they can do to save the most money on interest rates. For some, an early  rate lock may be the answer. For others, floating until a lower rate becomes available may be worth the risk. All loans are locked in at some point prior to closing, but should you do it earlier or later? Consider the following points to help you decide. Locking vs. Floating Locking In sets or “locks” the interest rate of your loan for a specific number of days. Typical locks run in 15 day increments up to 60 or 90 days. Once set, it's important for your loan to close within that period, and hence, locking is safe only if you're sure of the closing date. Floating is the opposite of locking in and simply means your rate is not yet set. It's "floating" with the market. If rates are moving down, you can benefit. If rates are moving up, your rate will, too. Which is Best?  Unfortunately, "best" c...

Over the life of the mortgage, the amount of a mortgage payment is composed of a combination of interest and principal repayment. Initially, your payment will be primarily interest, with a small amount of principal included. As the mortgage matures, the principal portion of the payment will increase and the interest portion will decrease. So, why do you pay so much interest in the early years of a mortgage loan ? Here are four reasons: 1. The interest owed starts to accrue from the day the loan is made.  When you deposit money at the bank, you naturally expect to start earning interest on the balance right away. It's exactly the same for lenders; they expect to earn interest on the balance as soon as they make a loan. 2. Interest diminishes along with the loan balance.  On a typical loan, you pay principal and interest each month. Over time, as you pay down the principal, you owe less interest each month, because your loan balance is lower. So, more of your month...

It's pretty amazing that a rate increase of just 2% can impact affordability by as much as $40,000. Rates have been artificially low for some time, but we've been seeing rates on the rise. Every smart consumer knows to ask the question "how can I get the lowest interest rate possible?". Unfortunately, lowest isn't always the best. This week, we're sharing with you some details on what you need to know about the real cost of owning a home and factors that may impact your interest rate. Lowest Isn't Always Best The lowest rate certainly sounds best. But did you know the lowest rate doesn't always mean the lowest cost? Mortgage interest is just one component of the real cost of owning a home. Interest rates are a reflection of expectations for inflation and the supply/demand equation for money. Rising rates typically mean rising inflation, too. When inflation occurs, the value of your home will typically rise. You can subtract that increase in va...

Many buyers have a misconception of how mortgage lending works, especially when it comes to interest rates. Some think that the interest rate quoted by the first lender they speak to is the rate they'll get across the board, so they just settle. In truth, that's not actually the case, and rate shopping is an essential part of selecting the right mortgage for your needs. Getting lower interest rates is possible if you go about it in the right way. Qualifying for lower rates can save you thousands of dollars in interest and get you out of debt sooner. Even if you have excellent credit, you still need to shop around to find the best rates, and that can take some serious effort. Here are a few tips for lowering your interest rate. 1. Request Your Credit Report You will need a credit score of more than 720 to get the best interest rates. Ideally, your credit report should be free of bankruptcy, collections or other serious delinquencies. Dispute any information on your cr...

When you're looking at buying a home at the Lake of the Ozarks , you know you'll need to start shopping for a mortgage loan . But if you’re like most home buyers, you might not know about all the things you should be considering when shopping for a loan. One of those important factors is knowing that the interest rate and the APR measure two different costs associated with your home loan, and this could affect your overall cost. Many consumers make the assumption that they're one in the same. However, understanding the difference between an interest rate and an annual percentage rate (APR) could save you thousands of dollars on your mortgage. Here's the Difference The interest rate is the cost you will pay each year to borrow the money, expressed as a percentage rate. It does not reflect fees or any other charges you may have to pay for the loan. An annual percentage rate (APR) reflects the mortgage interest rate plus other charges. There are many costs associated...