Friday, December 26, 2008
How to Get a Good Interest Rate
As we've seen the pastr couple of weeks, interest dropped to as low as 4.5% for a conforming, 30 year fixed rate loan which is outstanding. But after a few days, the rates went up. What happened? This is a fairly common phenominon where the banks get flooded with requests for refinancing and can't keep up with demand. So they raise rates in the short term to choke off the demand for new loans. What do the smart people do? They meet with their mortgage lender and get all the paperwork set up now (applications, verifications of employment, etc.). Most people wait until rates come back down again. But when rates drop again, the demand shoots through the roof and the cycle repeats itself. Be smart, set your paperwork up now and have your trusted loan professional give you a call when rates hit your target mark. Need a trusted loan professional? I know a couple of great ones. Contact me and I'll be happy to refer you to one. I make no money on it, but I believe that good deeds do come back to you.