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The mortgage calculators that I provide are tools that will enable you to determine the financial implications of changes in one or more variables in a mortgage financing arrangement. The mortgage calculators are used to provide estimates for monthly repayments which include the major variables in a mortgage calculation. Click Here
FIRST: make sure you are working with an experienced, professional loan officer. The largest financial transaction of your life is far too important to place into the hands of someone who is not capable of advising you properly and troubleshooting the issues that may arise along the way. But how can you tell? I only work with three local lenders, each of who have years of lending experience and work at very reputable local firms: HPW Towne Mortgage, Academy Mortgage and North State Bank. I would never recommend an Internet based lender nor one where the underwriting office is outside the market.
HERE ARE THREE SIMPLE QUESTIONS YOUR LENDER ABSOLUTELY MUST BE ABLE TO ANSWER CORRECTLY. IF THEY DO NOT KNOW THE ANSWERS.RUN.DON’T WALK. RUN.TO A LENDER THAT DOES!
1) What are mortgage interest rates based on?
The only correct answer is Mortgage Backed Securities or Mortgage Bonds, NOT the 10-year Treasury Note. While the 10-year Treasury Note sometimes trends in the same direction as Mortgage Bonds, it is not unusual to see them move in completely opposite directions. DO NOT work with a lender who has their eyes on the wrong indicators.
2) What is the next Economic Report or event that could cause interest rate movement?
A professional lender will have this at their fingertips. Economic Reports contain information by which the market may respond and adjust. Being aware of these announcements allows your lender to anticipate potential market changes.
3) When Fed Chairwoman and the Fed “change rates”, what does this mean and what impact does this have on mortgage interest rates?
The answer may surprise you. When the Fed makes a move, they can change a rate called the “Fed Funds Rate” or “Discount Rate”. These are both very short- term rates that impact credit cards, Home Equity credit lines, auto loans and the like. On the day of the Fed move, Mortgage rates most often will actually move in the opposite direction as the Fed change. This is due to the dynamics within the financial markets in response to inflation.
Be smart… Ask questions. Get answers!
More than likely, this is one of the largest and most important financial transactions you will ever make. You might do this only four or five times in your entire life, but we do this every single day. It’s your home and your future. It’s our profession and our passion. My team at The Jim Allen Group at Coldwell Banker Howard Perry And Walston and I are ready to work for your best interest.
Once you are satisfied that you are working with a top-quality professional mortgage advisor, here are the rules and secrets you must know to “shop” effectively. If you go with one of my preferred lenders, you are not going to run into any problems due to lack of knowledge or unethical actions.
There are many lending institutions that offer a variety of mortgage products. Financing options and rates can vary widely, so it is important to do your research and shop around to ensure you get the mortgage that best meets your needs at the best price.
I would be happy to refer you to some very good mortgage contacts I have in Raleigh, or to help you in any other way I can to secure the best possible rate for your home purchase.