Mortgage Lending
Preferred Parterning Lender
P R I M A R Y P A R T N E R S F I N A N C I A L
4041 MacArthur Blvd. Suite 230 * Newport Beach * California 92660
Ph 949.296.2520 * Fx 949.296.2521 * d.donsing@primary-partners.com
BRE 01366775 NMLS 353900 PPF NMLS 90225
Mortgage loans are particularly useful for most Americans who, having to juggle many more pressing financial responsibilities than ever before, may not have enough in savings to cover the full cost of a new property. While the choice of lender should be based on a multiplicity of factors, since interest rates can have the most single impact on a borrower’s monthly repayment amount, this should be among the most important elements to consider when comparing loan offers. Although interest rates fluctuate with the market, a borrower can increase his or her chances of qualifying for a fair rate by having a good credit history, stable source of income, and sufficient funds for both their down payment and closing costs. Applicants with fair to excellent credit profiles looking to purchase a home that is well within their means generally pose less of a risk for lenders. The lower the risk, the lower the interest rate.
When choosing a mortgage lender, borrowers should also consider the type of mortgage they’re looking to qualify for, especially whether it’s conventional or government-backed. Government-backed loans like FHA, VA, and USDA loans are insured by the U.S. Federal Government, which regulates borrower qualifications to ensure that these products remain accessible to middle- and low-income individuals or people with subpar credit histories. However, interest rates can be just as low for conventional loans as they are for government-backed loans, and both can have either fixed or variable rates. While fixed-rate mortgages maintain the same interest rate for the entire loan term, adjustable-rate mortgages have an initial period where the interest rate is fixed, after which it adjusts every year according to market fluctuations. There is a wide variety of mortgage loans available, so your choice will come down to the most favorable rates and terms for the location and type of home you want to purchase, as well as your credit profile.
To determine which type of mortgage and interest rate is best for you, make an honest assessment of your financial situation, factoring in how long you plan to live in your new home and how much you can afford to pay on a monthly basis. When choosing a mortgage lender, look at the loan program and interest rates they offer, and request a loan estimate to make the process as accurate and straightforward as possible. Remember that aside from making monthly payments, you’ll be required to cover additional fees and costs associated with the mortgage application and origination. Ask questions, find out your lender’s policies on locking and floating interest rates, and request a breakdown of the lender’s fees to know exactly what you can expect upon closing. The better informed you are, the easier the process of comparing mortgage rates will be.
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