By Enid Adinolfi, Mortgage Loan Originator
CNN and other major outlets reported yesterday that U.S. mortgage rates dropped below 6% for the first time in three years. While that sounds like incredible news, the reality homebuyers face may differ from this rose-colored view.
When mortgage rates are calculated, there are a number of variables that impact the number you, the consumer, ultimately receive. Think of the rate reported on the news as the “starting price,” then factor in the following:
- Will your mortgage be a 15-year term or a (more common) 30-year term?
- Do you have an exceptional credit score?
- Are you working with a big bank or a smaller mortgage lender?
- How much are you putting down on your home?
- What type of loan program are you using?
And these aren’t even all of the factors that can influence your final rate.
Similar to shopping for a car, the number advertised in the headlines represents a base price. As additional variables are factored in, that number can change.
That’s why working with a knowledgeable mortgage lender matters. A great lender will walk you through these variables and show you how to strengthen your financial profile to secure the most competitive rate possible. The earlier you begin the process, the more opportunity you have to improve your position- and potentially qualify for a rate even better than you expected.
Enid Adinolfi is a NYS licensed mortgage loan officer at Jet Direct Mortgage. She has been assisting home buyers in achieving the American Dream by getting them mortgage ready. She analyzes their credit, their income and their assets and helps them find a mortgage program that is right for them. NMLS#8316