Question : What is the interest rate for high credit scores and the differences in rates?
If one is prime rate. Credit score above 780. Are the final interest rates they quote you lower than what is advertise on their website? I am considering using a mortgage broker however their rates seem higher than the bank + the cost seems higher. If the rate is what they advertise, I might just go to the bank directly first and save my time. The mortgage broker seems to be on top of things and most likely have better info on closing etc. which is their only selling point but if the interest rate is higher than the competitor I am reluctant to go with it since they will hit my credit score if I apply. Simply put money is money a little .25% can equal 60K over the life of the loan. Something that could sit in investment generating returns for me. In general what is the difference in the interest rate for prime/ A credit scores? Are the advertised rates using prime rates or just average rates?Thanks in advance
- asked by echo1181
All Answers:
Answer #1
you can shop around, the prime rate is the rate ofinterest that the federal reserve dictates to fdicinsured banks, the banks mark that up and competewithin that realm. You have a good credit score soyou should be able to get an interest rate that isa couple point over prime. Usually what isadvertised is their lowest rate for someone with anear perfect credit score.
- answered by joey b
Answer #2
I work at a mortgage broker shop, and I believethat we can offer better rates to certainconsumers then banks can. Sometimes they can offerbetter then we can. Also, watch the total closingcosts as well. I know we get wholesale rates fromlenders and offer these to the consumers and justadd a small fee to it, but if you were to go tothese lenders yourself they would offer you RETAILrates. This is how my shop works we try to do asmuch volume as possible and work mostly off ofreferrals so we try to beat any deal out there,but different places go by different rules. Theprime changes from day to day as well so keep thatin mind when shopping. Do not let a lot of peoplepull your credit cause it could hurt you if youhave excessive pulls, maybe only like 5 people ina months time or so. Good Luck!!!!
- answered by Anthony P
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