Posted on: 19th Jun, 2007 10:29 pm
What is National Mortgage Rate? Is it what all mortgage lenders should stick to? But I have seen some sites offering higher APR than National Mortgage Rates? Then why should one go with these lenders?
And what is the meaning of the statement "Rates may contain points"? Many sites add this statement below the mortgage rates?
The last one: are mortgage rate and APR same?
And what is the meaning of the statement "Rates may contain points"? Many sites add this statement below the mortgage rates?
The last one: are mortgage rate and APR same?
The national mortgage rate is an average interest rate offered on home loans around the nation. It gives an idea of what the rates are currently throughout the nation. Not all lenders stick to it though.
Mortgage rate and APR aren't the same. The latter includes the cost of taking the loan along with the interest rate.
Mortgage rate and APR aren't the same. The latter includes the cost of taking the loan along with the interest rate.
Ok, then on what factors lenders fix their rates, I mean the APR?
Hello,
APR or (Annual Percentage Rate) the effective rate of interest of your loan if you include all the associated costs (like, closing costs and points). It is required by the Federal Truth in Lending to disclose the APR.
A number of factors are taken in consideration while calculating the APR, like prepaid interest, so on. For further information, you can visit the section on APR.
APR or (Annual Percentage Rate) the effective rate of interest of your loan if you include all the associated costs (like, closing costs and points). It is required by the Federal Truth in Lending to disclose the APR.
A number of factors are taken in consideration while calculating the APR, like prepaid interest, so on. For further information, you can visit the section on APR.
Hi iamblogaholic,
It implies that the points (a percentage of the loan amount) are included in the interest rates. In fact, there are lenders who do not offer a combination of rates and points; instead they offer the weighted average of the combination of rates and points. Since this average rate is calculated taking into account both interest rate and points, therefore it is said that "Rates may contain points".
Take care
It implies that the points (a percentage of the loan amount) are included in the interest rates. In fact, there are lenders who do not offer a combination of rates and points; instead they offer the weighted average of the combination of rates and points. Since this average rate is calculated taking into account both interest rate and points, therefore it is said that "Rates may contain points".
Take care
"And what is the meaning of the statement "Rates may contain points"? Many sites add this statement below the mortgage rates? "
One thing I would add is that paying more points can help reduce the interest rate sometimes.
One thing I would add is that paying more points can help reduce the interest rate sometimes.
I advise all of my clients to monitor market movements, particularly prior to rate lock---I don't particularly like surprises, neither do the rest of us and teaching my clients how to monitor the market answers the question, "How do I know that I am getting the best rate possible" effectively for both parties.
Here are some of my favorites:
- Federal Reserve Statistical Data (updated daily): http://www.federalreserve.gov/releases/h15/data.htm
- Freddie Mac's Weekly Mortgage Market Survey (updated weekly): "http://www.freddiemac.com/dlink/html/PMMS/display/PMMSOutputYr.jsp?year=2007"
- Freddie Mac's National Mortgage View (updated weekly): "http://www.freddiemac.com/dlink/html/PMMS/display/PMMSOutputWk.jsp?week=24&ending=20070614"
- Another National Mortgage Interest Average Reference Point (updated weekly): "http://www.hsh.com/metstsmp.html"
- Monitor the Mortgage Indexes (changed monthly or on a as need basis): "http://mortgage-x.com/general/mortgage_indexes.asp"
This is part of the due diligence I require of my clients and I strongly advise the readers to do the same.
Regards,
Scott Miller
Here are some of my favorites:
- Federal Reserve Statistical Data (updated daily): http://www.federalreserve.gov/releases/h15/data.htm
- Freddie Mac's Weekly Mortgage Market Survey (updated weekly): "http://www.freddiemac.com/dlink/html/PMMS/display/PMMSOutputYr.jsp?year=2007"
- Freddie Mac's National Mortgage View (updated weekly): "http://www.freddiemac.com/dlink/html/PMMS/display/PMMSOutputWk.jsp?week=24&ending=20070614"
- Another National Mortgage Interest Average Reference Point (updated weekly): "http://www.hsh.com/metstsmp.html"
- Monitor the Mortgage Indexes (changed monthly or on a as need basis): "http://mortgage-x.com/general/mortgage_indexes.asp"
This is part of the due diligence I require of my clients and I strongly advise the readers to do the same.
Regards,
Scott Miller