Trying to get the Lowest Mortgage Rate in Massachusetts

Get the Lowet Mortgage Rate PossibleYou decide to buy a home and want to get the lowest mortgage rate.  Of course, who wouldn’t!  But things may not always be what they appear to be.

If you are looking online at mortgage rates or in the paper,  read the fine print.  Of course they advertise the lowest mortgage rate they can offer, but there is usually a slew of conditions.

Here is a list of criteria that can prevent you from getting the lowest mortgage rate advertised:

  1. Is it a refinance or a purchase?  A purchase rate will be lower than a refinance rate.
  2. What type of property is it?  Anything other than a single family will have a higher interest rate.
  3. How much money are you putting down?  Most teaser rates are assuming you have 25% equity in the property.  For less equity there are interest rate bumps.
  4. What is your credit score?  There are interest rate hits for about every 20 points in credit score.  With all things being equal a borrower with a 740 credit score will get a much better rate than a borrower with a 640 credit score.
  5. Is the rate for a 30 year fixed?  Sometimes a 5 year ARM, or a 15 year fixed will be used to advertise a rate.
  6. You could be paying points.  Paying a point is buying down the interest rate.
  7. It is for the shortest rate lock available.  The longer your rate lock the higher your interest rate.  Teaser rates are usually offering very low rate lock periods.

The list goes on.  You get the point.   Today I typed in mortgage rates and Quicken Loans came up.  There lowest rate was 2.75%

But, read the fine print.  This is the criteria that would be used to get the lowest mortgage rate available.  It is there but the information is in small print at the bottom and then you have to click to another page.  To get this rate is a pretty tall order for most home buyers.



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