Mortgage rates are at historic lows right now and many people are taking advantage of it and either purchasing a new property or refinancing their current properties. In order to protect yourself and make sure you do not get ripped off by unscrupulous agents, you need to educate yourself on a few things.
How Does Your Loan Officer Work?
You need to know how many loan officers work as well as how lenders work as well.
Greed is the root of so many problems and it can also be a driving factor that is preventing you from getting the rate that you really should be getting without having to pay extra.
It might seem that the whole process is complicated, but if you know the right questions to ask and some basic information on the process, then you will be well on your way to protecting yourself from people that just want your money.
What Lenders Send To Loan Officers Daily
To begin, each and every day loan offi cers will get the available mortgage rates available for that day on what is called a rate sheet. This sheet will contain the par percentage which is the number you will get without paying extra and that will not give any perks to the broker either. The other numbers on that sheet will tell the officer what he or she will make if they give you a higher interest as well as what it would cost you to buy a lower interest. The money they get back is called a rebate from the lender and it is to encourage the selling of mortgages that are worth more to the banks. You should be getting this rebate back, but some people will not let you know about it and just keep it themselves.
Interest Rate Basis
Since most lenders base their percentages on the 10 year treasury bond, if you keep an eye on this, you will have a good idea on what you should be offered on any particular day. This way if they quote you a fairly high number, you can come back at them with w hat you know. Of course, if this happens, you might be better off sho pping around for other brokers.
Disclosure Laws
One important consideration is the fact that while pure brokers are required by law in Denver to show you the mortgage rates when you go see them, some may quickly gloss over the item hoping you will not catch it. On the other side, if you are dealing with an agent that works directly with the people that will be giving you the loan, they are not required at all to reveal the rebate. It will not even show on the Good Faith Estimate nor on the final closing settlement.
This loan officer [http://www.lakewood-mortgage.com/p/mortgage-rates-denver.html] in Denver will always give you the honest mortgage rates of the day. Right now, you can get fixed for under 5%. Visit his website at http://www.lakewood-mortgage.com [http://www.lakewood-mortgage.com/p/mortgage-rates-denver.html].
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