Buying Down Your Interest Rate
December 22, 2009 by Rob Spring · Leave a Comment
Buydown options
A buydown is a type of financing where the buyer or seller pays extra points (also called discount points) to reduce the interest rate on a loan.
Buydowns make it easier to qualify for a loan because they lower a loan’s interest rate. They can also allow you to buy more house for your [...]
Understanding ‘Discount Points’ and What They Do
December 10, 2009 by Rob Spring · Leave a Comment
How do you “buy” a better rate?
Do you plan on keeping your loan for a while? Then it may make sense to “buy” a lower interest rate by paying one or more “points.”
Even if you’re unsure of how long you plan to keep your mortgage before you move or refinance, paying points now for [...]
What the Historic Fed Move Means for Borrowers
November 30, 2009 by Rob Spring · Leave a Comment
Historic Fed Move – Cuts Go Both Ways for Borrowers
Who benefits from this cut?
If you have a loan that is directly tied to the Prime Rate, you will see an immediate benefit. Home equity lines of credit (HELOCs) and variable rate charge cards are the types of loans that will have an interest rate reduction [...]
What’s the Difference Between Interest Rate and A.P.R.?
November 30, 2009 by Rob Spring · Leave a Comment
What is the difference between the Interest Rate and the A.P.R.?
You’ll see an interest rate and an Annual Percentage Rate (A.P.R.) for each mortgage loan you see advertised. The easy answer to “why” is that federal law requires the lender to tell you both.
The A.P.R. is a tool for comparing different loans, which will include [...]
What is a ‘Rate Lock Period’?
November 30, 2009 by Rob Spring · Leave a Comment
What is a “rate lock period”? How can you make sure your rate is low?
A rate lock or a rate commitment is a lender’s promise to hold a certain interest rate and a certain number of points for you for a specified period of time while your application is processed. This prevents you from going through your [...]
Float/Lock Advice
November 10, 2009 by brianlis · Leave a Comment
Monitoring the market indicators is a top priority for Rob Spring’s Southwest Funding Team. We provide all of our clients with the knowledge they need to make an interest rate lock/float decision.
We use the latest technology to provide sound lock/float advise and real-time bond quotes so we know when lenders are likely to change their rates.