Showing posts with label rate lock. Show all posts
Showing posts with label rate lock. Show all posts

What to look for while shopping​ for a Kentucky Mortgage Rate.​

 ​Kentucky ​ Mortgage advice – What to look for while shopping​ for a Kentucky Mortgage Rate.​

1. Kentucky Mortgage Rates change daily

It used to be that rates changed once a week or so. In fact when I started in this business I used to receive a set of rates as a printed sheet that would usually be updated once every 2 weeks. Things have changed, especially since the latest financial crisis and during the current recovery. My biggest piece of advice if you are comparing rates is to get each broker, lender and bank to quote you their best rate on the same day.

2. Make sure the lock days being quoted are the same from each lender

Some sneaky mortgage brokers and banks will quote you the rate for a mortgage with an unrealistically short lock date. Banks usually give better rates if you are looking to act on the mortgage quickly because they can be more sure what they are committing to. On purchase transactions a 30 day lock is probably the shortest period you should have quoted and on a refinance 45 days is preferable. Give me a call at the number below if you’d like me to explain this better.

3. Compare apples to apples

Most people know that when you compare one rate to another you need to know what the APR and not the headline rate is. The difference between the headline rate and the APR is that the APR rolls into your rate most of the additional fees that come with the mortgage. The APR will be equal to or higher than the headline rate and a more realistic indicator of what you are actually paying for your mortgage. However, not all brokers disclose the same fees as one another so sometimes APR isn’t the perfect apples to apples comparison either. Make sure before you go ahead with a particular individual you completely understand all the rates you will be charged.

I’m hoping this information is helpful. I believe that the best service I can do for my customers is to be 100% transparent about the process and educate as much as possible about what they are getting into. If you would like to work with me just say the word. I would love to help you find a great product or perhaps just educate you a little more.

Give me a call me at the number below or go to our website  get a custom rate quote.

Joel Lobb
Mortgage Loan Officer
Individual NMLS ID #57916

American Mortgage Solutions, Inc.

Text/call:      502-905-3708
fax:            502-327-9119


How long do interest rate locks last on a Kentucky mortgage loan?

Q: I am pretty sure I already know the answer to this question but here it goes anyway. My wife and I plan to move into a different house/condo in two years. Is it possible to lock into a rate now that would hold for a couple years? What is the maximum time limit to hold a rate lock?
A: That’s a great idea! We wish we could lock in these interest rates for two years or even more, but most lenders’ interest rate locks are for 30, 45, 60 or 90 days. Frequently, you get the lowest interest rate with the shortest rate lock. You can call around and see what lenders in your area are offering, but it’s unlikely that you’ll find any lender willing to give you a rate lock that extends past those days.
In some new-construction scenarios, home builders will work with lenders to offer their home buyers a longer rate lock period. While the costs for the longer term rate lock may be absorbed by the builder, that builder then knows that the buyer has been approved for a loan and that the loan interest rate is somewhat certain. This certainty would mean that the buyer should be able to close on the loan without issues.
When new-construction buyers sign a contract for a home, the home might not be delivered for a year or so. That home buyer may be able to afford the home given today’s interest rates but not tomorrow’s if rates go sky high. Typically, builders get a preferred lender to offer a type of loan product that would allow the rates to go up a tad but would give the home buyer the benefit of a lower interest rate if rates drop down.
But we haven’t seen a two-year rate lock, even in a new home building scenario. Having said that, some lenders will allow you to buy a rate lock so you might find a lender willing to give a 365 day rate lock or even longer, but that lender will charge you a fee (sometimes it’s significant) to lock that rate.
From your standpoint, you have to determine whether the cost of locking the rate is worth it. We can’t tell you what a lender would charge for the lock, but we know that the longer you want to lock in the rate the higher the fee. And, if you add that to the annual cost of the mortgage, it’s going to push that super-low rate a lot higher.
Here’s the thing: If you look all the way back to 1993 (according to Freddie Mac data), when mortgage interest rates fell a bit below 7% for the first time since 1971, we’ve had incredibly low interest rates. Over the past 10 years, mortgage interest rates have barely been above 5 percent. According to Freddie Mac data, the last time they were over 5 percent, was April 2010.
In other words, it’s likely that interest rates will still be low in two years, and if they’re not, you can refinance when they fall again. That’s the smart move.
How long do interest rate locks last on a Kentucky mortgage loan?

Interest Rate Lock for a Kentucky Mortgage Loan

Interest Rate Lock on a Kentucky Mortgage Loan.

What is a rate lock?

A rate lock is an agreement between you (the borrower) and us (the lender) that a specific interest
rate will be provided to you for a specific period of time (the rate lock period).

When is my rate locked?

We will confirm and lock your interest rate with your verbal or written authorization.

What if rates go up before I close my loan?

Once your rate is locked, we immediately purchase money from our investors for you at that specific
rate. As long as your loan application is approved and all the other terms and conditions or the approval
requirements are met, this money will be available to you at your loan closing regardless of
market conditions after you have locked your rate. If interest rates have increased, you are protected
and can be assured that your locked rate will be honored on your loan papers on the date of closing.
We will NOT ask you to pay a higher interest rate simply because the market has worsened.

If rates appear to be dropping, why shouldn’t I wait to lock a rate?

Ask yourself what would be more disappointing: locking a rate and finding that you may have missed
a lower rate or NOT locking your rate and finding that rates have increased? It is our objective as
advisors to assist you in determining an optimal time to lock an interest rate given our professional
assessment of market conditions as well as your objectives as our client. We may not be able to
catch the very lowest rate every time, however, trying to time the market is a risky game. Far too often
the market can and does spike sharply leaving many clients wishing they would have locked in a
rate. Keep in mind that if rates continue to fall, you can always refinance your loan, subject to our
Post-Closing Refinance Policy.

How soon can I refinance my rate after closing?

As lenders, our contractual agreement with our investors requires that the loans we originate stay on
their books for at least 120 days. If the loan is paid off within that period of time (i.e. through a refinance),
we must return the compensation we received for our services on the initial loan. While we
cannot prevent you from refinancing during the first 120 days, we can only ask you in good faith if
you would refrain from doing so.

Interest Rate Lock for a Kentucky Mortgage Loan

Refinancing Mortgages

Refinancing Mortgages

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Joel Lobb (NMLS#57916)Senior  Loan Officer
502-905-3708 cell