Insider Tips To Getting The Lowest Rates And Fees
Are you looking for an even lower rate or payment than you were initially quoted using our online mortgage system? Here are some helpful hints to ensure you get the best interest rate and payment possible:
Interest Rate Buydown Options – The initial interest rate quoted is with a 0 point cost. If you plan to keep the loan for more than 36 months, it may make sense to buy down your interest rate to a lower rate. Select “View Interest Rate Buydown Options” located underneath the “New Loan Proposal” to compare your rate and payment options.
Cashout- There is a small add on to the interest rate for loans where you are getting cash in hand or paying off bills through the loan. Try comparing a straight refinance just lowering your rate and payment versus getting cash out.
Loan To Value - There is a small interest rate add on for loan amounts over 70% of the value of the home. If possible, try reducing your loan amount to 70% or less of the home’s value to get an even lower interest rate.
Small Loan Amounts - There are interest rate adjustments for loan amounts under $150,000. If possible, try increasing the size of your loan to get a better rate.
Jumbo Versus Conforming – The best rates are given to conforming loan amounts up to $417,000. Any loan over this amount is considered a super conforming or jumbo loan. Try reducing your loan amount to $417,000 or less to get the best rate.
Jumbo Loans – Loan amounts over $417,000 are generally better priced with 1 point cost instead of 0 points. Try viewing the interest rate buydown options and compare an interest rate at 0 points versus the interest rate at 1 point cost. With most jumbos it is worth paying a little bit more up front to get a dramatically lower interest rate and payment.
Impounds – There is a small adjustment to pay tax and insurance on your own. Try including tax and insurance in the monthly payments to get a lower rate.
Mortgage Insurance - Is your loan amount over 80% of the value of your home? If so, try reducing the loan amount to 80% or less of the home’s value. This will eliminate any private mortgage insurance required by the lender.
ARM – Thinking about selling or refinancing in a few years? Try a 3, 5 or 7 year ARM option. Often these types of loans will have lower interest rates and payments than a traditional fixed rate loan.
Investment Properties - There are add ons to the interest rate for investment properties over 75% of the value of the house. Try increasing your down payment or reducing your loan amount so that the loan is less than 75% of the value of the investment property to get an even better interest rate.
Speak With A Loan Coordinator
Would you prefer to speak with a Loan Coordinator over the telephone? Please call us directly at 1-800-276-CYOL(2965) and choose option 1. Or, click here to have one of our experienced representatives contact you directly.
Loan Qualifying Assumptions:
All online rate and payment quotes issued by Close Your Own Loan.com's online mortgage system assume a middle credit score of 740 or higher and a debt to income ratio under 43%. There may be adjustments to the terms depending upon your actual credit score, debt to income ratio, county loan limits, etc. The minimum credit score required is 620. Not all applicants will qualify.