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You can get the lowest
mortgage interest rate, but the fees are higher. You can get the lowest closing cost fees, but it costs you in
a higher rate. It’s important to look at which combination of rate and fees works for
your short and long term plans. Example of
Rate vs. Costs on a $200,000 - 30 year fixed loan.
Options:
You Choose Loan Type
Jan 2010 - 30 Year Fixed Interest Rates 5.00%
Rates and
fees below are examples only and do not reflect current rates or costs
|
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Lower Rate
|
Normal Quote
|
No Lender Cost
|
Full NO Cost
|
|
Rate
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4.250%
|
4.5%
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4.75%
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5.250%
|
|
Origination
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1%
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1%
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None
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None
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Points
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1%
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None
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None
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None
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Total
Closing Costs*
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$5150
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$3150*
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$1450
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None
|
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Monthly
P & I Payment
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$983.88
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$1013.37
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$1043.29
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$1,104.41
|
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30
Years of Interest
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$154,197
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$164,813
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$175,586
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$197,587
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APR
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4.845%
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4.634%
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4.813%
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5.250%
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As you can see from the
examples, the lowest rate & the lowest fees do not go hand-in-hand. It’s
just not possible to give both the best rate AND the lowest closing costs.
It's important to know what loan programs and closing cost options are available. Armed with knowledge, it's possible to get the best loan for your particular circumstances. Once you in the know, you may comfortably pick the loan type that works best for your circumstances.
I look forward to
speaking with you. Let me know how I might be of service to you in any way. Service is what it is all about.
As a retired independent licensed New Mexico Mortgage Broker, I can help you understand the nature of lending as it relates to your specific circumstances. ---Archer--->
*closing costs do not reflect exact
fees, but were used for ease in showing how comparissons are done.
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© 2010 Multiple Listing Service of the Silver City Regional MLS. All rights reserved.