Get The Best Lender For Your New Chicago Mortgage Refinance
Finding The Best Lender For Your Chicago home mortgage
If you have decided it's time for a new Chicago home mortgage, whether to purchase a new home or to refinance your existing home, lots of people think of the interest rate to be the main factor in deciding with whom to get their loan. This article would like to recommend that it is more important to focus you get your loan from a qualified professional rather than just the absolute rock bottom interest rate. Mortgage rates are pretty close to the same amongst all lenders (if any body says they have way better mortgage interest rates than the next guy, be suspicious). Mortgage lenders, however, vary significantly in their knowledge and ability to get you the most appropriate loan for your needs as well as to get it closed in a timely manner and on budget. Here are 4 suggestions for what to look for in your loan officer.
Above all, be sure you are working with a professional, pro Chicago home mortgage lender. The biggest financial decision of your life is waytoo important to place into the hands of any individual who is not capable of advising you properly and troubleshooting the issues that will arise along the way. How are you tellif that person is good enough? Here are 4 easy questions any lender definitely must be ready to answer correctly. If they don't know the answers, you just are not working with a professional!
1) What are mortgage rates based on? (the sole right answer is Mortgage Backed Securities also referred to as Mortgage Bonds, NOT the ten-year Treasury Note. Whilst the 10-year Treasury Note which occasionally trends in the same direction as mortgage bonds, it is not unusual to see them go in completely opposite directions. Don't work with a lender who has their eye on the incorrect indicators.)
2) What is the next Economic Report or event that could potentially cause interest movement? (A quality loan officer will have the answer at their fingertips).
3) When Bernanke and the Fed "raise or lower rates", what does this mean, and what likely impact mortgage interest rates? (The answer may be a surprise to you. When the Fed makes a move, they change a rate called the "Fed Funds Rate" or "Discount Rate". These are both awfully short-term rates that impact things like credit cards, Home Equity credit lines, auto loans and the like. On the day of the Fed move, Mortgage interest rates most frequently will actually move in the other way as the Fed change. This is thanks to the dynamics within the monetary markets responding to inflation).
4) Does your lender have access to live, real time, mortgage bond quotes? (If a mortgage lender can'texplain how Mortgage Bonds are moving in actual time and and be prepared for potential expensive intra-day price changes, you're speaking with a person that is still reading yesterday's paper, and likely is not a professional with whom to trust your mortgage financing. (Would you work with a stock broker who is only willing to grab the previous day's paper to tell you how a stock traded yesterday, but had no idea what the movement looks like right now and what market conditions potentially mightcause alterations in the near future?)
If you find that it is time to look into refinancing your current mortgage, or even if you're looking for a loan to purchase a property, you can find a lot of good information at Chicago Refinance Resource.
Hopefully Your Lender Isn't Floating Your Lock
If you've been on the fence about getting a mortgage, or if you happen to be in the process of getting a mortgage, hopefully your lender has locked your interest rate for you.
For quite a while now there has been a lot of talk about historically low mortgage interest rates. While in the big, BIG picture, today's rates are still very, very attractive, it's hard not to compare them to rates of just a few weeks ago. If you were to do that... you would be in for a shock.
Just before Memorial Day 2009 it was pretty standard to be able to get a 30 year fixed rate mortgage for under 5% if you had decent credit. In fact, some were getting close to 4.5% at times. However, since after Memorial Day rates have been on a tear; a tear UP. And according to most experts out there, it doesn't look like they're going to come back down to those incredibly low levels of a month or so ago any time soon. Actually, it's quite possible that we won't see those rates again at all.
If you have a goog mortgage lender, none of this is news to you as they would have been keeping your abreast of market changing conditions. if you have "your guy" as a mortgage lender and this is news to you... I can only suggest you start looking around for someone else.