SHOPPING AROUND FOR A MORTGAGE?
HERE’S THE INSIDE SCOOP ON HOW TO DO IT RIGHT.
Shopping around for a mortgage is hard, it is the largest financial transaction of your life and far too important to place into the hands of someone who is not capable of advising you properly. Here are four simple questions to ask your lender in order to make sure he or she is experienced enough to guide you through the loan process.
1. What are mortgage interest rates based on? The only correct answer is Mortgage Backed Securities or Mortgage Bonds, not the Fed or the 10-year Treasury Note. While the 10-year Treasury Note sometimes trends in the same direction as Mortgage Bonds, it is not unusual to see them move in completely opposite directions. Do not work with a lender who has their eyes on the wrong indicators.
2. What is the next Economic Report or event that could cause interest rate movement?
A professional lender will have this at their fingertips. Contact me to receive an up-to-date calendar of economic reports and events that may cause rates to fluctuate.
3. When the Fed “changes rates”, what does this mean… and what impact does this have on mortgage interest rates? The answer may surprise you. When the Fed makes a move, they are changing a very short-term rate that impacts credit cards and lines of credit… but NOT fixed-rate mortgages. For more details, see my article called: How the Fed Impacts Mortgage Rates.
4. What is happening in the market today and what do you see in the near future? If a lender cannot explain and show you a picture of what’s happening with mortgage bonds and interest rates, you are probably talking with someone who is not experienced enough to handle one of the largest and most important financial transactions you will ever make. You might do this only four or five times in your entire life, but I do this every single day. Contact me for more details or to schedule a conversation!
Source: CMPS Institute
Certified Mortgage Planning Specialist
Carrero Mortgage Advisors, LLC
3600 Red Road Suite 310,
Miramar, Florida 33025
Corporate NMLS: 1734670
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Carrero Mortgage Advisors, LLC NMLS# 1734670 is an Equal Housing Opportunity Lender. © Copyright 2019 and is headquartered at 3600 Red Road Suite 310, Miramar, FL 33025. All rights reserved. Nationwide Mortgage Licensing System (NMLS) Consumer Access Web Site: www.nmlsconsumeraccess.org.
Figure: 7 TAC 80.200(b)
“ANY CONSUMER WISHING TO FILE A COMPLAINT AGAINST A COMPANY OR A RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550. THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OF CERTAIN ACTUAL OUT-OF-POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED RESIDENTIAL MORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV.“