When Sonoma county Mortgage lenders quote rates these days, typically we are refering to a 30 day 30 year fixed conforming rate for 1 point. Well what does all that mean?
The First part is the term of the lock period. Right now 30 days is about the average escrow. It does no real good to look at rates that are advertised at 15 days because you can’t take advantage of them. They don’t represent what you can anticipate when trying to figure out your payment You can lock for a longer period of time but typically your rate will increase because the lender is holding that rate for you for a longer period of time in the face of changing economic conditions.
The 30 year fixed program is the most widely used program that we offer right now. This is a fully amortized loan in which your payment includes both a principle and interst payment. All these loans are going to require full documentation of your income and assets.
The conforming loan product refers to loans that are less than 417,000 loan amount. First time home buyers will want to take advantage of FHA programs which may have different lending limits,lower down payment requirements but also higher interest rates.
The 1 point refers to the discount fee. As it implies, by spending the 1 point you are discounting the rate you are paying. there are no free lunches now nor were there ever. Paying points will typically pay for itself in the form of cash flow in about 3 years. You don’t however have to pay points. First time home buyers may elect to save their money to pay for home furnishings or window coverings rather than spend the money on buying down their payment. The rate you will be able to get will be slightly higher if you don’t spend points however. Typically a no point loan is .375% -.500% higher than a 1 point loan. You need to speak with an experienced mortage banker in order to decide what is right for you with regard to all these items. Make sure you understand all your options. There is no right thing for everyone.
If you have any questions regarding mortgage rates or anything regarding Mortgage home loans in Healdsburg or Sonoma County please contact me at 707-431-9715 or go to my other Website at Prospect Mortgage.
