|
|
Looking for rates?
It is the position of Apex Residential Mortgage that “quoting” you a rate online or even over the phone, without having any knowledge of your situation or motivation is simply a disservice. There are hundreds of variables that are taken into consideration when determining an interest rate; it is for this reason that blindly “quoting” rates is impossible to do with any sort of accuracy. In addition there are many different types of loan programs that carry different interest rates, such as adjustable or fixed rate programs.
A perfect example of this disservice can be found in the Real Estate section of your local Sunday paper. There, you will find a long list of mortgage companies quoting rates anywhere from 1.0% up to 8.0% with jargon such as points, no points, fees, no fees, etc. This is simply a game that mortgage companies play to get you to call them. They know that the first thing you will look at is the “low” interest rate. What they also know is the average consumer does not fully understand how points work or how they are different than origination fees, closing costs, or other fees. They are exploiting the lack of understanding that most consumers have about how interest rates are derived.
Definitions:
Points: The most common definition of “points” is a fee paid to a mortgage company to reduce the interest rate. Points are paid in the form of a percentage of the loan amount. Simply put, if someone says “points”, what they mean to say is “percentage” If you pay 1 point you are paying 1 percent of the loan amount. It is important for consumers to understand how this process works so that they are not duped by a Mortgage Company who is ethically challenged. Paying points is not a bad thing at all; it is just important that you understand how it works and how it may or may not benefit you.
Origination Fee: The “origination fee” is the fee that is paid to the Mortgage Company for rendering their services. Origination fees are most commonly paid in the form of a percentage. This percentage is based on the loan amount.
Closing Costs: The “closing costs” are the sum of all fees associated with the mortgage loan transaction. This is the most common term that people associate with fees being paid on a mortgage. Closing costs include points, origination fee, appraisal fee, title fee, escrow fee, and any other fees that are associated with the transaction. Mortgage Companies are required by federal law to provide consumers with a Good Faith Estimate that discloses the closing costs.
| Program | Rate | Points | APR |
| PRIVACY | LEGAL | PATRIOT ACT | LINKS | ||
|
Apex Residential Mortgage, L.L.C. 16000 Mill Creek Blvd. Ste 211 Mill Creek, WA 98012 Phone (425) 379-2739 Fax (425) 949-4038 State Licensing Information |
|
|
All content ©1999-2008 MorSystems™ All rights reserved.
Account login
|
||