When it comes to California mortgage quotes, the rate is important but it is also necessary to consider the overall costs involved. Factors like the APR, loan fees, discount and origination points need to be properly understood and calculated.
Counting the Points
Lenders may or may not include discount and origination points in their California mortgage quote points. It is also possible that they quote discount points alone but the fact is, an additional origination point or a fraction of a point also needs to be worked in.
The way points are quoted in California Mortgage quotes can make a lot of difference to the consumer. There are lenders who will come clean with all the points but there are also those who may only reveal an extra point or a part of it, with the result that you are in for a nasty surprise later.
California mortgage rates are largely affected by supply and demand. When there is a greater number of sellers in comparison to buyers, the rates will remain low. It is during such periods that the buyer can be at advantage and therefore it is the best time for California mortgage rates with low interest rates.
Interest rate is mainly dictated by the buyers credit history when it comes to mortgage loans. It is advisable that you first check your credit and make all the necessary corrections to ensure that your credit score is favorable. Only once you are able to do this, should you apply for a California mortgage rate loan.
Common Lending Scams
It is not possible to find a lender with 7% while the majority of lenders have their rates at 7.5% for the same total coast on the very same day. The quote is primarily intended to convince you to go ahead with your application. Later, at the time of locking in rates, what you get is exactly the same as everybody else.
Basically the low rates cannot be locked until the time of approval. Then the rate is locked for a very brief duration till the time you close. The average period is around 10 days. During the time it takes for the approval to come through, the rates can change. Its easy for any lender to quote a lower rate on a short lock. On your part you need to realize that the rate risk is a very real one during the loan process.
Many lenders are also likely to charge high fees for being able to give you lower points. Such fees cannot be deducted unlike points which can. Thus the effective rate becomes even higher in such a situation.