Cincinnati Mortgage Rates Today | McKinley Mortgage
Cincinnati Mortgage Rates Change Daily: Why are mortgage rates important?
If you are planning to buy a home in the near future, you should be focused on finding the best mortgage rate. Perhaps you might be worrying that a higher mortgage rate will force you to settle for less than your ideal home or may even affect your ability to buy a home. So, how important are mortgage interest rates? How closely should you follow them as you start the home buying process?
Should Mortgage Interest Rates Be Considered When Choosing Between Lenders?
If you are shopping around for a home loan lender, you may see different advertised interest rates. Before you start comparison shopping based on these numbers, follow these simple rules:
- Most differences in mortgage rates will be minimal, usually one-eighth or one-quarter of a percentage point. The difference will not have a significant impact on your monthly payments. Although your rate and monthly payment is a huge factor in which lender you choose, it is also important to focus on the level of service they can provide. You should look at how knowledgeable the mortgage brokers and loan officers are on new laws and regulations regarding home loans. We suggest that you ask about the speed of the process before making your final decision. Being delayed several months in closing may ultimately be more detrimental than paying a fraction of a point in rate.
- In many cases, the advertised rate is not what you will be paying. It may be the best rate that is offered, while the actual rate will be affected by the specific loan program you choose, your credit and other factors.
What Should You Look At?
Of course, Annual Percentage Rate (APR) matters and is one of the most important drivers of the monthly payment. But, when shopping for a lender, you should also focus on quality service and personalized attention. Here are some things to evaluate when choosing your lender.
- The lender’s reputation. (Check out some information about McKinley Mortgage.)
- Ability to provide guidance for a smooth transaction. Where are they located? (McKinley Mortgage is located in Blue Ash, Ohio. Click here for a map.)
- Other costs, such as points, fees and APR (see below)
Points, often known as discount points, are defined as interest that is prepaid to the lender at closing, which generally reduces the interest rate and lowers the monthly payment. Generally, one point is equal to one percent of the loan amount. For instance, on a $200,000 loan, you would pay $2,000 to reduce the interest rate by one percentage point.
You may have to pay other fees to process the loan. Some of them are standard, such as title insurance and appraisal fees, while others may vary by lender. All lenders are required to provide what is known as a “good faith estimate” or a document that includes the interest rate, lender fees, title charges, pre-paid interest and mortgage insurance. Although this document only provides an estimate, it allows you to compare lenders and their anticipated costs associated with getting a mortgage.
Annual Percentage Rate (APR)
The APR includes discount points, lender fees and mortgage insurance, if required. It will be slightly higher than the nominal interest rate for a loan, in most cases.
The Forecast for Interest Rates
Forecasting what interest rates will be in the future is near impossible. Over the last 20 years, McKinley Mortgage has provided excellent customer service to all of our valued customers. Our goal is to give you the best mortgage interest rates available and top notch customer service from start to finish. We understand that financing the purchase of a home can be frustrating. It is important to have a local mortgage broker that you can trust. Not someone across the country that you will never meet in person.