Posted on: 10th Jul, 2005 10:31 pm
will i get a better interest rate if i have good
credit score?
credit score?
Hi Carolina,
It is true that a good credit score helps in acquiring a loan easily than a poor credit rating. Lenders take into account a number of factors apart from the credit score in approving the loan.
However the interest rate varies with the type of loan acquired. The interest rates are not fixed upon by the lender. They are decided upon by the investors in the secondary market where the lenders sell their mortgage loans. The interest rates rise and fall according to the demands of the investors in the secondary market with the change in economy. The rates charged by the lenders vary in accordance with those charged by the investors.
Please let us know if you have any other query.
Regards,
Adonis
It is true that a good credit score helps in acquiring a loan easily than a poor credit rating. Lenders take into account a number of factors apart from the credit score in approving the loan.
However the interest rate varies with the type of loan acquired. The interest rates are not fixed upon by the lender. They are decided upon by the investors in the secondary market where the lenders sell their mortgage loans. The interest rates rise and fall according to the demands of the investors in the secondary market with the change in economy. The rates charged by the lenders vary in accordance with those charged by the investors.
Please let us know if you have any other query.
Regards,
Adonis
I have locked in interest rate for a mortgage.Now if the market rates decrease, will i get low rate?
Hi Anderson,
Welcome to the forums.
Let me inform that you cannot get a low rate even though there is a fall in the market rates.
A rate lock is a written agreement between the borrower and the lender by which the former is required to pay off the loan with a specified rate provided he closes the loan within a specific date, say 30, 45 or 60 days. The lender charger a higher interest rate if the time of rate lock is greater because the longer the lock, the greater is the risk in providing it.
Please feel free to send further queries.
Regards
Jessica.
Welcome to the forums.
Let me inform that you cannot get a low rate even though there is a fall in the market rates.
A rate lock is a written agreement between the borrower and the lender by which the former is required to pay off the loan with a specified rate provided he closes the loan within a specific date, say 30, 45 or 60 days. The lender charger a higher interest rate if the time of rate lock is greater because the longer the lock, the greater is the risk in providing it.
Please feel free to send further queries.
Regards
Jessica.
Is there a cost to lock-in my interest rate at the time of application?
Welcome to the forums.
Yes, you need to pay a cost to lock in your interest rate. Generally the cost equals 1/2% of the total loan amount for standard loans and 1/4% on qualifying affordable housing mortgages. Some lenders credit the cost of rate lock at the time of closing.
Wish to hear from you soon.
Regards
Adonis
Yes, you need to pay a cost to lock in your interest rate. Generally the cost equals 1/2% of the total loan amount for standard loans and 1/4% on qualifying affordable housing mortgages. Some lenders credit the cost of rate lock at the time of closing.
Wish to hear from you soon.
Regards
Adonis
hi
An interest rate is the price a borrower pays for the use of money they do not own, for instance a small company might borrow from a bank to kick start their business, and the return a lender receives for deferring the use of funds, by lending it to the borrower. Interest rates are normally expressed as a percentage rate over the period of one year.
Regards
An interest rate is the price a borrower pays for the use of money they do not own, for instance a small company might borrow from a bank to kick start their business, and the return a lender receives for deferring the use of funds, by lending it to the borrower. Interest rates are normally expressed as a percentage rate over the period of one year.
Regards
i guess we all succumb to the temptation to post for the sake of posting, eh?
