There are no simple answers to this "simple" question.
There's not a day goes by that we're not asked, "what are your rates?" for this-or- that kind of mortgage... usually, it's an interest only mortgage of some type that's generated the inquiry. Borrowers invariably get upset or frustrated because there's no simple, "cut and dry" answer to this question. In fact, here's a direct quote from one borrower's e-mail...
"I have just started shopping, I am most interested in comparing costs of mortgages and rates for a five-year, interest only and remaining 25 year fixed mortgage. Loan amount $300,000. I must admit, finding out this info is difficult, since everyone wants to talk or come see you without answering the questions upfront. I am trying to find out this information without talking to 20 people."
Just so the average or typical borrower understands, while it may seem like a simple, straight-forward question is being asked here, there are no simple answers for us to offer. The reason why shopping can be tedious, is not because "everyone wants to talk"... but rather, because there's no way to give you accurate and reliable information without asking you a few questions first.
Here's why... mortgage investors/lenders look at a variety of factors when determining interest rates. Even when a borrower has excellent credit, there are issues such as... how you earn income, and how well it can be documented; what the loan's LTV (Loan-To-Value ratio) might be; is the borrower getting cash out; and so on. When a purchase mortgage is involved, it can be even more complex.
Often, we ourselves don't know what questions we'll need to ask, until we start talking... then, in the course of conversation, things come out which help clear the picture.
Another important reason why there's no "cut and dry" answer to this question is how interest only mortgages are structured. The vast majority of interest only mortgages are "combo" offerings. For instance, in the case of zero down, interest only mortgages, the most common offering is an 80/20 combo, followed by the 70/30 combo, where 100% financing is achieved by two loans usually provided by the same lender.
The larger 80% and 70% first mortgages are usually ARMs (adjustable rate mortgages) which can be based on 2/28, 3/1, 5/1 and 7/1 plans... the borrower has a choice of which type of ARM will comprise their larger mortgage. Because of this, there's already reason for plenty of variance in what rate will be available on the first mortgage.
The smaller 20% or 30% second mortgage is usually a fixed rate mortgage which is set by the specific lender, and can vary anywhere between a half percent to 2 percent between lenders. Again, here's reason to see why even "ball-parking" a rate or possible payment prediction on an interest only mortgage is tricky business.
At Mortgage Match, if getting the lowest possible payment on a borrower's mortgage is important above all else to the customer, then we may be shopping up to a dozen lenders or more... depending on the customer's total borrowing profile.
We're sure any mortgage representative you talk to as a borrower wants to do business with you. So, it's only natural, they want to give you their best "numbers". There are a lot of excellent products out there for refinancing and purchasing a home. So, it comes down to getting you the best of what's available, based on your specific situation and borrowing profile.
When one of our Senior Loan Consultants attempt to get in touch with you,
please don't view this contact as a "sales" call. It's more of an "information gathering" conversation that's actually as much of a benefit to us, as it is to you.
It comes down to this... we can't do our jobs properly, or be of the right kind of service to you, unless we know what we're talking about. That means "knowing" about you, and you're going to be the expert on that subject.
Based on what we learn after we talk, we'll be able to get back to you with some "hard and fast" numbers. Numbers that you can literally "take to the bank".
To get a free, no obligation quote on any type of purchase or refinance mortgage, please complete this simple, fast form... you'll find by clicking here.
"I have just started shopping, I am most interested in comparing costs of mortgages and rates for a five-year, interest only and remaining 25 year fixed mortgage. Loan amount $300,000. I must admit, finding out this info is difficult, since everyone wants to talk or come see you without answering the questions upfront. I am trying to find out this information without talking to 20 people."
Just so the average or typical borrower understands, while it may seem like a simple, straight-forward question is being asked here, there are no simple answers for us to offer. The reason why shopping can be tedious, is not because "everyone wants to talk"... but rather, because there's no way to give you accurate and reliable information without asking you a few questions first.
Here's why... mortgage investors/lenders look at a variety of factors when determining interest rates. Even when a borrower has excellent credit, there are issues such as... how you earn income, and how well it can be documented; what the loan's LTV (Loan-To-Value ratio) might be; is the borrower getting cash out; and so on. When a purchase mortgage is involved, it can be even more complex.
Often, we ourselves don't know what questions we'll need to ask, until we start talking... then, in the course of conversation, things come out which help clear the picture.
Another important reason why there's no "cut and dry" answer to this question is how interest only mortgages are structured. The vast majority of interest only mortgages are "combo" offerings. For instance, in the case of zero down, interest only mortgages, the most common offering is an 80/20 combo, followed by the 70/30 combo, where 100% financing is achieved by two loans usually provided by the same lender.
The larger 80% and 70% first mortgages are usually ARMs (adjustable rate mortgages) which can be based on 2/28, 3/1, 5/1 and 7/1 plans... the borrower has a choice of which type of ARM will comprise their larger mortgage. Because of this, there's already reason for plenty of variance in what rate will be available on the first mortgage.
The smaller 20% or 30% second mortgage is usually a fixed rate mortgage which is set by the specific lender, and can vary anywhere between a half percent to 2 percent between lenders. Again, here's reason to see why even "ball-parking" a rate or possible payment prediction on an interest only mortgage is tricky business.
At Mortgage Match, if getting the lowest possible payment on a borrower's mortgage is important above all else to the customer, then we may be shopping up to a dozen lenders or more... depending on the customer's total borrowing profile.
We're sure any mortgage representative you talk to as a borrower wants to do business with you. So, it's only natural, they want to give you their best "numbers". There are a lot of excellent products out there for refinancing and purchasing a home. So, it comes down to getting you the best of what's available, based on your specific situation and borrowing profile.
When one of our Senior Loan Consultants attempt to get in touch with you,
please don't view this contact as a "sales" call. It's more of an "information gathering" conversation that's actually as much of a benefit to us, as it is to you.
It comes down to this... we can't do our jobs properly, or be of the right kind of service to you, unless we know what we're talking about. That means "knowing" about you, and you're going to be the expert on that subject.
Based on what we learn after we talk, we'll be able to get back to you with some "hard and fast" numbers. Numbers that you can literally "take to the bank".
To get a free, no obligation quote on any type of purchase or refinance mortgage, please complete this simple, fast form... you'll find by clicking here.
For more information on zero down, interest only mortgages, please also see...
Zero down, interest only mortgages and The Home Depot.
Interest only mortgages simplified.
Interest only mortgages... they're a good thing.
The benefits of getting preapproved for an interest only loan.
It's not that hard to get an interest only mortgage.
Why it's hard to quickly quote a rate on an interest only loan.
Zero down, interest only mortgages even with bad credit.
FAQs on interest only mortgages.
