When considering purchasing property utilizing a mortgage loan or refinancing a home with a mortgage loan, it is wise to shop.
However, there are many confusing issues and industry terminology that can prevent the prospective borrower from finding that best rate at the least cost.
The following is a basic primer for shopping for the best overall deal on a mortgage loan.
Below is a small sample of what a loan officer looks at in order to work with the borrower on the loan.
RATE 10 DAY 25 DAY 40 DAY Loan Amount Cashout Refinance RATE 10 DAY 25 DAY 40 DAY 7.
375 (3.
500) (3.
375) (3.
125) -Loan Amt $110,000 and above add 0.
000 -Cashout LTV 70.
01% - 80% add 0.
500 7.
000 (3.
125) (3.
000) (2.
750) 7.
250 (3.
125) (3.
000) (2.
750) -Loan Amt $75,000 to $109,999 add 0.
125 -Cashout LTV 80.
01% - 90% add 0.
750 6.
875 (3.
000) (2.
875) (2.
625) 7.
125 (2.
750) (2.
625) (2.
375) -Loan Amt $50,000 to $74,999 add 0.
250 Reduced MI Option 6.
750 (2.
625) (2.
500) (2.
250) 7.
000 (2.
375) (2.
250) (2.
000) -Loan Amt $40,000 to $49,999 add 1.
000 -Reduced MI 12% add 0.
375 6.
625 (2.
250) (2.
125) (1.
875) 6.
875 (1.
875) (1.
750) (1.
500) -Loan Amt under $40,000 add 2.
000 -Reduced MI 18% LTV95-97% add 1.
50 6.
375 (1.
500) (1.
375) (1.
125) 6.
625 (1.
125) (1.
000) (0.
750) -Non-Owner LTV 80.
01% - 90% add 2.
500 Other 6.
250 (1.
000) (0.
875) (0.
625) 6.
500 (0.
625) (0.
500) (0.
250) -Non-Owner LTV 75.
01% - 80% add 2.
000 -FICO http://www.
4efs.
com