Loan Trust believes that the more we educate consumers and give them the knowledge of the mortgage industry, then they will be in a better financial position to qualify for the best mortgage rate available in the marketplace. Most people aren’t aware that mortgage rates can change daily and throughout the day depending on the market volatility on a variety of factors.  But there are some aspects that can determine the consumers mortgage rate that is in their control based upon their personal situation.  We know and want consumers to know that the difference in mortgage rates can cost tens of thousands and possible hundreds of thousands of dollars in interest cost over the life of the mortgage loan.  Listed below are some of the recommendations and what we offer at Loan Trust to help our clients find the best mortgage rate.

1. Shop Mortgage Lenders:  Although utilizing your real estate agent to help you with the lender they work with to get you approved for a mortgage loan is a source, but it doesn’t mean you’re getting the best mortgage rates.   Most agents work with mortgage lenders that they have a track record with that has proven to get loans approved, but real estate agents are necessarily shopping to find you the lowest interest rate on your mortgage.  Actually, they’re reluctant to work with lenders that they aren’t familiar with because they want to make sure the house sells and closes, after all that is the only way they’re compensated for their work.  What we do here at Loan Trust, we do the shopping for you and let you see what’s in the marketplace.  Basically, we buy the money in the marketplace wholesale and lend it retail to offer you low competitive rates.
2. Compare Lender Fees & Points:  Unless you have experience and are knowledgeable of the industry, then you might not be aware that you have to pay along with mortgage interest, fees, points and closing cost that factor in the overall cost of the mortgage loan.  We recommend that when you choose a lender, compare official Loan Estimates (LE) and pay attention to the lowest interest rate and lowest annual percentage rate (APR).  This is a measuring tool that will give you confidence that you’re getting one of the best rates in the marketplace for your personal situation.
3. Larger Down Payments:  Most consumers aren’t aware that mortgage rates are calculated from a lenders perspective on Risks Factors.   Lenders have less risks if you invest more by putting a larger down payment.   This lesser risk can impact your mortgage rate and put you in a lower risk tier especially if you put 20% or more down.  This is why most lenders require mortgage insurance if you don’t put 20% down.  All the mortgage insurance does is protect the lender up to a certain amount if you default on the loan.  It’s will not protect you the borrower, but it will allow you to qualify for a larger loan by putting less money down.
4. Improve Your Credit Mortgage Score:  Your credit score is definitely the major determining factor of what rate the lender will offer you and generally, the higher your credit score, the lower the mortgage interest rate will be for your mortgage loan.   Noticed that we mentioned “Mortgage Credit Score”, because most consumers aren’t aware that there is a different model used for scoring on mortgage credit scores than what is used for a typical FICO 8 scoring model for consumer credit such as credit cards and auto loans.
5. Explore Different Types of Mortgage Programs:  The 30-year fixed rate mortgage is the most common type of home loan, but there are additional mortgage options that may be more beneficial depending on your situation. For example, if you require a lower interest rate, adjustable-rate mortgages (ARM) offer a variable rate that may be initially lower than a 30-year fixed rate option but adjusts after a set period of time (usually 3, 5, 7 or 10 years). Given that ARM loans are variable, the interest rate could end up being higher than with a 30-year fixed rate mortgage that has a locked-in mortgage rate. A 15-year fixed rate mortgage, on the other hand, may offer a lower interest rate that won’t fluctuate like an ARM loan but requires a higher monthly payment compared to a 30-year fixed rate mortgage. Consider all your options and choose the home loan that is most comfortable for you.