Bradenton Herald
Most people are aware of the historically low interest rates currently available on mortgage loans. This past week, the Federal Reserve lowered the federal funds rate by .75 percent to the lowest level ever. While this rate is not directly linked to mortgage interest rates, the rates on mortgages did respond. Borrowers can lock in interest rates as low as 4.75 percent for a 30-year fixed loan.
Periodically, borrowers should evaluate their mortgage terms to determine whether refinancing would be economically wise. What data are needed to accurately decide?
The information includes your current mortgage rate and term, expected length of loan, current home type and estimated value, escrow information for taxes and insurance, and personal data (credit, income, assets). Your mortgage professional needs this information to supply a written good faith estimate and truth in lending statement with proposed interest rate, closing costs if the loan was refinanced, and the actual APR including interest rate and all fees. Many lenders will offer rates that apply only to the best customers and then reveal increases in rates and fees after underwriting. This reinforces the need to provide complete information and to deal with trustworthy sources to avoid hidden, unpleasant surprises. Remember, until you receive a written notice that your rate is locked with a lender, then the good faith and truth in lending statement is just an estimate and the data can change at any time. Read More...
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