Mortgage interest rates are indeed at all time lows, but I want to clarify something for the average consumer. When you hear about rates in the news, they are usually referring to Freddie Mac’s rate survey knows as PMMS. What they don’t tell you is that in this rate survey origination fees knows as points are included. I am posting a link to today’s survey here, www.freddiemac.com/pmms/.
Today the 15 year fixed is being shown at 2.97% but included are points or .7%. Normally when a customer calls me for a rate quote, I always start with a ZERO point rate quote which is going to be higher than the rate they saw in the news. I then get asked "why is your rate higher" and it’s usually a long conversation to explain the relationship between fees/points/costs and interest rates. Just know this, fees and interest rates have an inverse relationship, as one moves the other moves in the opposite direction.
The more you understand as a consumer the better you will be able to shop for a mortgage. A mortgage is a complex commodity and not a good! The price is ever moving. Rely on a true mortgage professional to give you advice and earn your business.
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Purchasing home is a significant economical step and should be part of your overall operating plan. After making a interest amount evaluation to find the best loan program, Artisan Mortgage can help you remain on top of your mortgage.