One question many in the mortgage industry hear often is:
What are the rates today?
Sounds like this would be an easy question to answer - but it is not. There are so many factors affecting the rates. I read an article on a mortgage website that I thought was confusing:
As of today 30 year rates are pretty low:
- One point will get you 5.5%
- Want no points, you’ll get 5.75%
- Want zero points, you’ll get 6.25%
Of course you’ll need suberb credit, decent income, more equity (80% loan balance to property value ratio) and assets.
If you were presented the above scenario - which option would you choose? Do you want "no points" and a rate of 5.75% or would you rather have "zero points" for the rate of 6.25%? I would assume many would pick the lower rate - no points should equal zero points so lets go with the lower rate.
Points are points - whether you call them Origination Fees, Origination Points, Discount Fees or Discount Points. The above scenario - the No Points, you'll get 5.75% actually has a one point origination fee. This stuff drives me crazy and it probably does the same for the consumer.
If you are interested in getting a quote on an Outer Banks Mortgage or if you would like a second opinion at no charge - please feel free to contact me at your convenience.
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