Like any other home owner in America, Wisconsin residents want low mortgage rates to make home ownership more affordable or to consolidate consumer debts for lower monthly payments. But when shopping Wisconsin mortgage rates with various banks and mortgage brokers how can you make sure that you get the rates that you were expecting? Well if you ask a few important questions at the start of the loan process you will be assured a smooth loan process from start to finish.
Questions You Should Ask Your Mortgage Lender
Fixed Or Adjustable Rate: Many companies when quoting Wisconsin mortgage rates will quote very low adjustable mortgage rates instead of fixed rates. This is done to get people to call in and find out about the very low rates they heard advertised. This is a deceptive marketing practice and companies the advertise like this should be avoided.
Loan To Value: Many mortgage rates advertised today are based on a loan to value of 80% or less. So if you do not have at least 20% equity in your home then you will not be eligible for the lowest rates available.
Rate Lock: Some mortgage companies will quote lower rates then the competitors based on a shorter rate lock period. The standard rate lock for Wisconsin mortgage rates is 30 days. But by locking it for say 10 or 15 days the mortgage company can offer a slightly lower rate. The drawback to this is that if your loan is delayed and the lock expires you may have to re lock at a higher rate if the market worsens
Closing Costs: Always ask if the rate is being quoted with or without origination points. Sometimes mortgage companies will offer very low mortgage rates but the borrower will have to pay points to get those rates. Generally one to two percent of the total loan amount will need to be paid in the form of points to get the lower rate.
Whats The APR: The APR or annual percentage rate is a reflection of the cost required to borrow. An APR that is more then .6% or higher then the mortgage interest rate can be a sign of very high closing costs. If the Wisconsin mortgage rates you are being quoted have a high APR ask the mortgage company for a good faith estimate that show the fees you are paying.
By asking these questions when shopping for the best mortgage rates you should be able to narrow your choices down to a two or three mortgage companies you fell comfortable with and make your final loan decision with a little less stress!
To learn more questions to ask your Wisconsin Mortgage Broker and more info on how to shop for low Wisconsin Mortgage Rates visit our website.
Questions You Should Ask Your Mortgage Lender
Fixed Or Adjustable Rate: Many companies when quoting Wisconsin mortgage rates will quote very low adjustable mortgage rates instead of fixed rates. This is done to get people to call in and find out about the very low rates they heard advertised. This is a deceptive marketing practice and companies the advertise like this should be avoided.
Loan To Value: Many mortgage rates advertised today are based on a loan to value of 80% or less. So if you do not have at least 20% equity in your home then you will not be eligible for the lowest rates available.
Rate Lock: Some mortgage companies will quote lower rates then the competitors based on a shorter rate lock period. The standard rate lock for Wisconsin mortgage rates is 30 days. But by locking it for say 10 or 15 days the mortgage company can offer a slightly lower rate. The drawback to this is that if your loan is delayed and the lock expires you may have to re lock at a higher rate if the market worsens
Closing Costs: Always ask if the rate is being quoted with or without origination points. Sometimes mortgage companies will offer very low mortgage rates but the borrower will have to pay points to get those rates. Generally one to two percent of the total loan amount will need to be paid in the form of points to get the lower rate.
Whats The APR: The APR or annual percentage rate is a reflection of the cost required to borrow. An APR that is more then .6% or higher then the mortgage interest rate can be a sign of very high closing costs. If the Wisconsin mortgage rates you are being quoted have a high APR ask the mortgage company for a good faith estimate that show the fees you are paying.
By asking these questions when shopping for the best mortgage rates you should be able to narrow your choices down to a two or three mortgage companies you fell comfortable with and make your final loan decision with a little less stress!
To learn more questions to ask your Wisconsin Mortgage Broker and more info on how to shop for low Wisconsin Mortgage Rates visit our website.