As we approach the end of November, there has been an increase in new home construction and builder confidence, while rates remain low and unemployment claims start to rise.
Summary: When buying a home, buyers should always take the time to search for the best interest rate. This article discusses the new Rate Quote Tool provided by Sammamish Mortgage. This article also encourages readers to get in touch with Sammamish Mortgage to learn more.
When you shop for a home, one of the most important things you need to be aware of is your mortgage interest rate. Your mortgage interest rate plays a central role in determining your monthly payment obligation and the total amount you pay for your home.
Your interest rate is determined by a number of different variables. These variables include your credit score, down payment size, employment status, home location, macroeconomic factors, and others as well. One way you can optimize your interest rate is to check rates with multiple lenders. Even with identical credentials, you may not receive the same interest rate across different mortgage lenders. This is why it’s important for you to go the extra mile and do research with multiple lenders.
When you do your research on mortgage rates with different lenders, you’re sure to find that some lenders make the research process easier than others. In an effort to make the research process as easy on prospective borrowers as possible, Sammamish Mortgage has recently created a new Rate Quote Tool (RQT) which is very user friendly. In this post, we will go over the basics of this new tool, highlight its features, and stress the importance of tracking mortgage rates before making your home purchase.
Our Rate Quote Tool is User Friendly
The team at Sammamish Mortgage has worked hard to ensure that our Rate Quote Tool is highly user friendly. Our RQT requires just a few pieces of information and can be accessed on both mobile and non-mobile platforms. To generate quotes, you will need to provide the following information: zip code (of your desired home location), purchase price, down payment, credit score, occupancy type (primary residence, second home, or investment), property type, and loan type. Notably, users will not need to provide an email address, phone number, or social security number to generate quotes. The above information is all the information you’ll need to provide.
After you input all the necessary information, our RQT will generate the rates for which you may apply, along with the payment, costs, and terms associated with those rates. As an example, after inputting your information, you may find a rate of 3.5%, with an annual percentage rate (APR) of 3.75%, a monthly payment, points and lender fees. You can click to apply for this specific rate, and you can also click to see a detailed cost breakdown of the rate.
With our RQT, you’ll be able to see precisely what you’ll need to pay in lender fees to obtain each rate. The rates will be sorted in an orderly way, with the lowest rate appearing at the top and the highest rate appearing at the bottom. You’ll see that the lowest rate comes with the highest lender fees, while the highest rate comes with the lowest lender fees.
As you may know, your annual percentage rate (APR) is the true rate you’ll pay when all fees and costs are accounted for in your loan. Your interest rate doesn’t account for the additional fees and costs that are required to start your loan, such as your origination fee, and so on. The APR therefore gives you a more accurate picture of what you’ll pay.
The monthly payment generated with our RQT is referred to as your P&I Payment. P&I Payment refers to your “principal” and “interest,” and so it doesn’t include other fixed monthly costs, such as property taxes and homeowner’s insurance.
If you use our RQT, you should note that the rates provided are only estimates; your actual rate may vary depending on your particular situation.
When you apply, your situation will be scrutinized in a more detailed fashion, and this more detailed scrutiny could lead to an altered final rate. Our RQT includes a disclaimer below each rate to notify our prospective borrowers of this important fact.
The Advanced Options of Our RQT
In addition to the basic features of our RQT which we’ve addressed above, our RQT also has an “advanced options” feature. This advanced options feature allows users to create a different set of rate quotes based on additional information. The additional information is as follows: lock days, 2nd mortgage, 2nd mortgage amount, military/veteran status. Depending on your responses, these advanced options may generate higher or lower rate quotes. We’ve discussed the treatment of second mortgage elsewhere on our site, and so users preparing for a second mortgage may want to view these resources before proceeding.
Why Tracking Mortgage Rates is Essential
As mentioned, you may obtain different rates from different lenders, even with identical credentials. This is why it’s so important that you shop around and check rates from multiple lenders. This is true regardless of whether you’re doing a purchase or refinance.
If you take the first rate offered by a lender before thoroughly checking rates, you could lose out on a significant quantity of money. It’s very possible that you could obtain a better rate by simply shopping around. When you shop around, you are essentially putting the laws of economics in your service by compelling lenders to compete against each other for your business. This competitive economic process enables you to get the best possible rate given your credentials.
With the Rate Quote Tool provided by Sammamish Mortgage, we make checking rates extremely easy. Our RQT will save you a huge amount of time and energy. The engineers on our team designed the RQT specifically for the benefit of our users.
Researching mortgage rates is often a time-consuming endeavor, and understanding mortgage rates can sometimes be quite difficult. With the Rate Quote Tool provided by Sammamish Mortgage, hopefully the process has been simplified by at least a small degree. If you’d like more information on how to properly search for mortgage rates, or how rates are determined, or any other related topic, please reach out to the professionals at Sammamish Mortgage today.
Contact Sammamish Mortgage for More Information
Sammamish Mortgage is a family-owned mortgage company based in the Pacific Northwest. We’ve been offering high quality mortgage programs to buyers in WA, OR, ID, and CO since 1992. If you’d like more information, contact us today. .