30 Year Fixed Rate Loan at a Cost of One Point: 3.25%* (APR=3.47)
Rates edged up sharply today after two very positive economic reports surfaced that spooked the bond market. Unemployment claims were way down in January, and housing starts were way up in December (much higher than expected).
We get borrowers all the time who are overly paranoid about ?inquiries? on their credit reports. They often refuse to let us pull their credit, making it impossible for us pre-approve them.
Their fears are unwarranted. While an inquiry from a credit card company can affect one?s score by 1 to 5 points, an inquiry from a mortgage company often has little to no effect. In fact, multiple inquiries generated when rate-shopping for a mortgage, auto or student loan are consolidated by credit scoring models when done within a certain window of time.
The FICO scoring model, in particular, ignores mortgage, auto and student loan inquiries altogether in the 30 days prior to scoring. Mortgage, auto and student loan inquiries older than 30 days are lumped as one inquiry whenever they fall within a 14-day span.
In other words, ten different mortgage lenders can pull your credit within a week, and it will have the same marginal effect on your credit as having one mortgage lender pull your credit.
*The above rate quote has the following assumptions: $500,000 purchase; $400,000 loan amount; 20% down payment; credit score above 740; property is SFR; borrower has sufficient income to qualify; Estimated closing costs affecting the APR include $4,000 for Origination Fee; $995 for Lender Fees; $2,300 for Title Insurance (CLTA and ALTA), $800 for Escrow Fee; and $1,000 for Prepaid Interest.
Call Jay Voorhees or Heejin Kim at (925) 855-4491
Real Estate Broker, CA Dept of Real Estate, DRE# 01524255, NMLS# 335646
17
JAN
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