Mortgage Rates

March 25, 2015

How Can You Find The Lowest Mortgage Rates In Chicago?

Chicago mortgage rates are in a flux; what may have seemed true a year ago is false today. A homebuyer who is not well informed will likely pay too much for his or her mortgage. It is important to understand the different factors that go into determining mortgage interest rates — including factors in your life and industry-wide concerns. When you have this knowledge, you are better prepared to find the lowest rates.

A few of the personal circumstances that influence mortgage rates include:

  • What is the type of property and intended occupancy? — Do you plan to live there, or rent? Is it a single or multifamily home? All of these little elements can affect the final loan cost — even if the upfront cost of the home is the same.
  • What is your credit score? — Credit scores are huge. Are you looking at a solid score above 740 or one that is lagging in the mid 600s? What about an average score around 710? Different credit scores will change your options.
  • What are the closing plans? — Will the home close quickly or slowly? Could it take longer than 60 days? Closing plans absolutely affect loan costs.
  • Are there escrow concerns? — Are you going to escrow for taxes and insurance, or do you want to pay taxes and insurance separately? Additional costs from escrow could run rates higher.

Because of all these variances, it does not make much sense for a homebuyer to call a lender to ask for the 30-year fixed interest rate. The question is too vague. While there might be an answer, it will probably not be more than an estimate.

Finally, it is vital that a homebuyer researches and shops different lenders at the same time. Mortgage rates are tied to Fannie Mae and Freddie Mac mortgage backed securities. These are traded 24/7 on the secondary market. These trades influence the yield and affect the interest rate. Calling one lender today and another tomorrow will likely lead to different rate quotes based on seemingly insignificant changes in the market.

Why You Need to Understand the Difference Between Home Lenders to Get the Best Rate

Every mortgage lender is different. Taking the time to learn about the different options while doing your research can help you get the rates you desire. Big banks may give you great rates but service may suffer. Small mortgage brokers might be a good fit, but they do everything out-of-house, so rates could climb higher than you initially thought — when the extra feeds are added.  Study the differences and make sure you know who and what you are working with, before fully committing.

If you are just starting to search for a mortgage lender, why not let United Home Loans show you why we are a one-of-a-kind option. Family owned, with a strong focus on customer service, we offer flexibility and customization that big banks can’t provide — while still promoting on-time, in-house closings. Many of our customers feel that we offer the perfect balance for all types of home loans. If you’d like to learn more, call 708-531-8388 or contact us below.

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