Rates by lender for Friday, May 16, 2008
At Citylight Financial we're committed to providing you with the best services and loan programs. To accomplish this goal, we maintain close ties to many different lenders and hundreds of different home loan, mortgage loan, home equity loan and refinancing programs.
We realize there are many scenarios you'll encounter when purchasing or financing a home. Our goal is to keep you informed and up to date with the mortgage process. That's why we provide you with the latest rate information and allow you to compare rate percentages, APR, and points from top lenders in the nation.
Rates as of Friday, May 16, 2008
| Institution | Rate % | APR | Point(%) | Point($) | Lender Fees | Total Lender Cost |
|---|---|---|---|---|---|---|
 |
5.875 | 5.911 | 0.000 | 0 | 1250 | 1250 |
 |
5.875 | 6.033 | 1.105 | 4608 | 0 | 4608 |
 |
5.875 | 6.051 | 1.250 | 5213 | 1385 | 6598 |
Rate %
Mortgage rates and rates for home equity loans are determined by a variety of factors ranging from how the economy is performing to what your credit score is. Rates and typically rise and fall with the direction of interest rates loan, the national economy, and the Federal Reserve Board. The terms of the mortgage also affect interest rates. A larger down payment and choosing a shorter loan term usually lead to a better mortgage rate. In addition to those estimates, your credit rating, FICO score, and other financial figures determine what rate you're qualified for.
APR
The annual percentage rate was designed to be an all-inclusive figure. It includes most costs of a mortgage and measures the value of those costs over the life of the loan term. Compared to other types of data, the APR is usually the best measure to use when considering buying a home or when comparing loans.
Often times lenders calculate their loans in varying ways and it may be difficult to determine which loan is best. Because of different loan terms, lenders are required by law to advertise APR. It takes into account most loan costs including loan fees, points, and insurance, making it one of the most important figures when comparing lenders.
Point(%)
Points are fees paid to the lender for the loan. They are usually linked with interest rates and the more points you pay the lower the rate will be on your mortgage.
To get a lower rate on your mortgage you can make a large upfront payment on the interest of the loan. This is known as paying points and each point is 1% of the mortgage amount. A higher point percentage means you pay more upfront in return for a lower mortgage rate over the life of the loan. On the other hand, lower point percentages mean a smaller down payment and high rate for the loan.
Many homebuyers prefer to pay for points now to lock in lower rates for the life of the mortgage. If this is your case and you expect a longer mortgage term then paying higher points up front may be the better option.
Lender Fees
Lender fees often include underwriting or loan origination fees, broker fees, transaction fees, and closing costs. These costs are typically advertised and should be provided for you by the lender.
Some fees are often negotiable and can be lumped together into one large fee. Ask your lender for an explanation if you don't understand a fee.