To give an accurate written mortgage refinance quote the lender first off has to get all of your information. You mortgage refinance rate has many different elements to it that can change the pricing of the loan. The lender will need to take your application that will give them an idea of your credit, income, assets and the type of loan that you are looking for. After getting all of this information the lender can then look at the market and see what the rates will be on the specific type of mortgage product that you are looking for. They are then able to give you a proper mortgage refinance quote. This mortgage refinance quote should come in the form of a good faith estimate. A good faith estimate will break down all the payments and charges that will be included in the loan.
When mortgage companies set the guidelines for their loan they have to analyze how much risk will the borrower bring on. This risk will allow them to price your loan. Obviously the greater the risk the borrower assumes the more expensive the loan will be.
How they evaluate the risk made up of a few different factors. First off they analyze your credit, the better the credit score the cheaper the loan. In your mortgage refinance application they look at how much money you are borrowing, if you are borrowing a large amount of money it is going to be more expensive. The next thing they look at is the type of property. They want to know is this your primary residence or an investment property. Is it a condo or single family residence. Next they will analyze what type of mortgage product do you want. The shorter the terms of the mortgage the cheaper they will be. This means the faster they can get their money back the less they will charge you.
Apply Now for your free consultation!
