Unless your interest rate is locked, the interest rate that is stated on your application does not necessarily reflect the current market interest rates. Because interest rates fluctuate from one day to the next (sometimes from one hour to the next), it is not possible for us to predict where interest rates will be at the moment that we lock in your rate. Therefore, we typically use a rate that is slightly higher than the rates that are currently available. This is only so that we do not have to re-underwrite your mortgage in the event rates increase before your rate is locked. (One source to track national average interest rates and trends is www.freddiemac.com).
As Professional Mortgage Planners, our goal is to ensure that you have the lowest cost of your money over the anticipated life of the loan. As part of that, we will analyze the difference between rate and fees, and determine at what level of closing costs we suggest you pay in order to minimize the overall cost of the loan. Remember, the lowest rate on the wrong program can cost you thousands of dollars more than a higher rate on the right program. As professionals, we will always advise you based upon our extensive understanding of mortgage trends and interest rate vs. fee options. We seek to earn your trust and understanding that we will always make recommendations that are appropriate for you.
As part of our jobs, my team and I spend a significant amount of time studying the current market trends and likely changes. With the help of live bond tracking, as well as advice from advisors that we hire, we are pretty accurate at predicting short-term market changes. By using this knowledge to recommend when to lock a rate vs. float, we can potentially save you thousands of dollars over the life of the loan. The key to this is to be prepared to make a quick decision in the event that we see an adverse change in the market. All too often, we will make a recommendation to a client to lock and they will need time to consider the decision. By the time they are ready to commit to a rate lock, the opportunity is often lost. Mortgage rates are not stable like car loans or home equity loan rates. We want to ensure that you are ready to make a decision to lock if we see an adverse change in the market.
Another benefit of using City Creek Mortgage is for our access to the lowest cost money available. You never have to worry about shopping around for the lowest rates. We take care of that for you. We know which banks and mortgage companies are offering the lowest rates at the time, and we will ensure that we are placing your mortgage with the best offering at the time. Furthermore, because interest rates can change from hour to hour, shopping for the “lowest” interest rate is a waste of time. Shop for a lender you trust, not for interest rates.
Lastly, we greatly appreciate you and look forward to serving your mortgage planning needs for life. You can rest confidently knowing that your mortgage will be managed by a team of professionals who are committed to ensuring that we not only help save you thousands of dollars by having us manage your mortgage, but that we also are helping to empower your family and increasing your net worth. You will never have to worry if you are in the best mortgage based on the current market conditions, or whether you are working with an honest, ethical and purpose-driven company. As long as you are a part of the City Creek Family, you will never have to worry about your mortgage.