Common Questions on Home Financing
I enjoy educating my clients. If your question is not answered below, just ask me directly.
Frequently Asked Questions
How can I get the lowest interest rate?
Interest rates literally change daily and sometimes multiple times throughout the day. The only interest I have is getting you the lowest possible rate I can offer at the time I lock your loan. Paper, TV and Internet lending advertising are designed to get you to call. Most of the time their programs do not apply, or their interest rates are weeks old. If it seems too good to be true it usually is!
What are “no cost” loans?
Anybody who generates home (mortgage) loans are in business to make money. Lenders that advertise no fee or no cost loans can only do so by offering you a higher than market interest rate. The people (investors) that provide these lenders money to fund home loans will pay these lenders a premium for an above market rate loan, these lenders then use the premium to pay the fees associated with getting a home loan. Your loan may not cost anything, but over the life of your loan you can pay tens of thousands of dollars in higher interest costs. There might be a situation where taking a higher interest rate in lieu of fees makes sense. Please ask and I can run through these scenarios with you.
Why use a mortgage company over your bank for home financing?
The answer is simple. A Mortgage Company like Integrity Mortgage has access to a variety of lenders, programs, and rates. Banks, credit unions, and finance companies don’t. There are many lending programs available in today’s competitive world. Rates and pricing differ widely among lending institutions, which is another advantage to using a mortgage loan broker. A good mortgage loan originator like myself will research and place a loan with the lender that is most competitive and meets each client’s needs.
Don’t mortgage brokers charge more?
This is a complete myth! In fact, a good mortgage broker like Integrity Mortgage will usually cost you less than a bank, credit union or other finance company. The lending experience will be personalized and service will be superior!
Are those ultra-low rates being advertised online and in the mail for real?
Advertising from some lenders can be misleading. They tend to give you just enough information to get you interested without explaining the full details and cost breakdown of the loan. I will fully explain the options and benefits to you. Lenders are required by law to provide you with a Loan Estimate showing a breakdown of all fees associated with your loan within 3 business days of the loan application. I will take the time to thoroughly review loan details and costs with you. I will also provide a 2nd opinion on any Loan Estimate you have already received from another lender.
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9290 Madison Avenue, Orangevale, CA 95662
NMLS# 332232 | DRE# 01371423