In a recent video, I discussed a tool that helps prospective homebuyers get a rough idea of the mortgage interest rates they might qualify for. The purpose of this tool is not to provide a mortgage or interest rate quote, but rather to offer a general sense of what you could expect. Here’s a breakdown of what was covered in the video.
The Importance of Compliance
As a lender, it’s crucial for me to clarify that this tool is not meant to give you an official quote. There are compliance issues involved in providing quotes, and this tool is designed to skirt those issues while still offering valuable information.
How to Get a Rough Estimate
To get a ballpark figure of what your interest rate might be, you can simply go to Google and search for “mortgage interest rates.” A small window will appear at the top of the search results, just below the first set of ads. This window displays an average interest rate, which is useful because it’s a neutral source—neither you nor I have control over Google’s data.
Factors That Affect Your Rate
The rate you see on Google is an average, and the rate you’re offered will depend on various factors like your credit score, the type of loan you’re getting, and other financial variables. As a correspondent lender, I can often find rates that are below this average, sometimes by as much as a full point, depending on how the deal is structured.
Want a Firm Quote? Contact Me
If you’re looking for a firm quote that won’t change, you’ll need to get in touch with me directly. I can provide a quote based on your specific financial situation.
Playing Around with Terms
The tool allows you to adjust the term of the loan, which will, in turn, affect your monthly payments. The shortest term I offer is eight years, but you can see how changing the term to 15 years or 30 years will impact your potential affordability. Keep in mind that these figures are based on the assumption that your credit is in good shape and that you’ve input all other information correctly.
While this tool isn’t a substitute for a formal quote, it’s a handy resource for getting a general idea of what you might qualify for in terms of a mortgage interest rate. If you’re interested in getting a more precise figure, feel free to contact me directly. Thank you for watching the video, and stay tuned for more informative content!