Interest rates are a hot-button issue in today’s real estate market. Buyers, sellers, and homeowners alike have a lot of questions about the subject.
So, in order to clarify a few things, I recently spoke with financing expert Karen Johnson of Waterstone Mortgage about this topic, and I’m excited to share a few highlights from our discussion with you today.
The first question we tackled is one buyers ask me all the time, “Is there a one-size-fits-all interest rate?” Karen’s answer to this was simple: no. The interest rate a buyer secures on their mortgage will vary depending on a number of factors, like their credit score, the amount they plan to put down, the loan program they’re using, and the state of the market.
And because interest rates vary so much, many people are surprised when they hear what they qualify for. After seeing such low rates advertised online and on other various sources, many people expect that theirs will be the same. Unfortunately, if a mortgage company is advertising rates that seem too good to be true, they probably are. Many mortgage companies advertise these rates for the sake of attracting business, only to later reveal to buyers that they’ll have to pay for something called “discount points” in order to buy down to a lower rate.
In fact, reputable mortgage companies won’t even be able to tell you what range of interest rates you might qualify for until you’ve provided them with the necessary documentation. Only after they’ve reviewed your financial circumstances will a lender like Karen be able to delve into what you might qualify for.
Interest rates change all the time, with adjustments taking place on a daily basis. Often, rates will change multiple times within the same business day, so the only way to be sure what kind of rate you’ll end up with is to connect with a professional like Karen.
If you would like to speak to Karen about your own financial situation, you can reach her by giving her a call at (407) 645-6360 or by emailing her at firstname.lastname@example.org.
And, as always, if you have any other questions or want more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.