Refinancing Home Mortgage
In: Mortgage Rate
22 Mar 2010I want to compare different mortgage lenders rates for me but I don’t want them all pulling my credit & lowering my score. My credit score is 739, and a place told me 6.5% yesterday. What is the average rate for good credit?? Can I get a better rate from my bank or a mortgage company?
This is about mortgage information questions.
4 Responses to how do i compare mortgage companies rate without each of them pulling my credit?
Mythogical Beast
March 22nd, 2010 at 8:56 am
Most places can give you a quote by just hearing your average annual income, how much a property is worth, how much you want to borrow, and what your credit rating is, and how much outstanding debt you already have. They’ll just take your word for it, knowing that it would be a preliminary rate that would have to be adjusted when more facts (like the condition of the property) are known. Nonetheless, it’s a number that would allow you to compare rates.
When comparing rates, you need to pick a specific loan period (30 years is typical, but go for 15 if you can afford it), and nail them down about the number of points. You can get a lower rate if you take a shorter period, and an increase in points can also decrease your rate.
mazziatplay
March 22nd, 2010 at 9:52 am
You can pull your own credit report without impacting your score. The middle score of the three agencies is the score the lenders will use. You can then supply them with that number and their quote will be predicated on that score.
Yestereday moring the par ( no buy down) rate for a 28 day lock on a 30 year fixed rate with a 1% origination fee was 6.125% but it increased to 6.25% yesterday afternoon. At 6.25% someone is making a bundle on you.
If you’re comparing just rates you may be doing yourself a disservice as rate is only one component of what makes a loan the right one for your specific needs and goals. But if it is solely a comparison of rate and costs you want I suggest you also compare the APR’s as well as they reflect the costs of the financing. The closer the APR is to the quoted rate, the most cost effective the costs of financing.
Carolinahomerates.com
March 22nd, 2010 at 10:37 am
depends on your down payment and if it’s 30yr fixed.
banks have huge overheads they need to pay….their loans may be slightly higher than a mortgage company.
if you have a loan over 200k…and putting at least 5% down…you should get 6.375 with 1 origination fee.
Shawna Marie
March 22nd, 2010 at 10:51 am
No, you do not have to let someone pull your credit for them to give you an estimated quote, but if you call and ask “what are your rates” that’s a pretty general question. The loan officer should agree to give you a quote without pulling your credit, but you should be willing to give them all the information they need:
How much is your income?
How much are you putting down/borrowing?
What other bills do you have on your credit?
How much is owed on them? What is the payment?
What term are you looking for?
Do you want a fixed rate? Interest only? Line of credit?
There are many, many variables that go into a quote. Here’s another thing, if you aren’t going to get all of your quotes the same day, then you cannot accurately compare companies. Rates change DAILY. Some of our lenders change 2 and 3 times a day.
You just need to chose who you want to work with, and believe that they are going to give you a good deal. If you just call around asking “what’s your rates”, LO’s with no experience with throw anything out there just to get you to do an application. The old “bait and switch”. A good and experienced loan officer is never going to just throw a number out there without knowing the entire scenario. We can tell you what the best 30 year rate is, but that doesn’t mean it’s what you’re going to get.
Brokers have better rates than the banks, I didn’t believe that until I left being a broker to work at the bank!! The bank builds yield into every deal, so the rate is typically higher. Needless to say, I came back to being a broker last year.
The average rate yesterday was 6.04% on a 30 year, this information was pulled from money.cnn.com
You can check this information yourself daily to watch the rates. Whoever gives you a quote shouldn’t be too far off from that rate.
Hope this helps!!