Question:
“What interest rate can I get for a home loan?”
Answer:
Years ago, that was a simple question with a simple answer. But today, you have to answer these questions first:
- Owner occupied or investment property?
- For single family, 2 units/duplex, or 3-4 units?
- Fixed or adjustable?
- If fixed, fixed for 3, 5, 7, 10, 15, or 30 years?
- Interest only or amortized?
- If amortized, is it 15, 30, or some other # of years?
- Conforming (up to 417K), “confumbo” (to 546K) or jumbo (over 546K)? (These loan limits are for single family homes.)
- The rate to close today or the rate if you lock for a closing in the future?
- How long do you need to lock in: 15, 30, 45, or 60 days?
- How many points: 0, .5, 1, 1.5, 2, more? (e.g. 1 point is a fee that’s 1% of the loan.)
- What’s your FICO score?
- Do you have more than four residential loans?
And because I’m not a lender, I’m probably even missing a few more variables.
If you’re looking for a home loan, you should talk with the great lender I use. Just call me at (858)457-KENT and we’ll put you in touch with them.
