Mortgage loan

Either Way, You’re Still Paying a Mortgage


Posted by Margaret Szerlip 12PM EST, Newton, MA.   Newton, MA. Top Brokers, Sotheby’s Newton, MA.

Thanks for sharing KCM Crew..

Either Way, You’re Still Paying a Mortgage


Either Way, You’re Still Paying a Mortgage

Posted: 04 Nov 2014 04:00 AM PST

Either Way You're Still Paying a Mortgage | Keeping Current Matters

There are some people that have not purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage – either your mortgage or your landlord’s. As a paper from the Joint Center for Housing Studies at Harvard University explains: 

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return. That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

Also, if you purchase with a 30-year fixed rate mortgage, your ‘housing expense’ is locked in over the thirty years for the most part. If you rent, the one guarantee you will have is that your rent will increase over that same thirty year time period.


Unless you are living with your parents rent free, you are paying a mortgage. #KCM2014
Click To TweetPowered By CoSchedule


As an owner, the mortgage payment is a ‘forced savings’ which will allow you to have equity in your home you can tap into later in your life. As a renter, you guarantee the landlord is the person with that equity.

Bottom Line

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, owning might make more sense than renting since home values and interest rates are still at bargain prices.

Taking the Spooky Out of the Mortgage Process


Posted by Margaret Szerlip 11:00AM EST, Newton, MA.

Taking the Spooky Out of the Mortgage Process [INFOGRAPHIC]Posted: 31 Oct 2014 04:00 AM PDT

Taking the "Spooky" Out of the Mortgage Process | Keeping Current Matters

 

Buying a Home with as Little as 3-5% Down Payment


Buying a Home with as Little as 3-5% Down Payment

Posted: 30 Oct 2014 2:30PM EST Newton, MA.

Buying a Home for as Little as 3-5% Down | Keeping Current Matters

We have recently reported on the misconception that many buyers have regarding the down payment necessary to purchase a home. Multiple studies reveal that 40-50% of Americans believe you need between 15-20% of a down payment to be eligible to purchase a home. This misconception came about as the government just last year debated new guidelines for residential mortgages because of the housing collapse in 2007. Some were arguing that there should be a minimum of 20% or even 30% down payment on all mortgage loans. However, those standards were never implemented. To counter this misunderstanding, Christina Boyle, Freddie Mac’s VP and Head of Single-Family Sales & Relationship Management, in a recent Executive Perspectives explained that a person “can get a conforming, conventional mortgage with a down payment of as little as 5 percent”.

3% Down Payments Available Soon?

Just last week, Federal Housing Finance Agency Director Mel Watt announced that mortgages requiring only a three percent down payment may soon be available:

“To increase access for creditworthy but lower-wealth borrowers, FHFA is also working with the Enterprises to develop sensible and responsible guidelines for mortgages with loan-to-value ratios between 95 and 97 percent. Through these revised guidelines, we believe that the Enterprises will be able to responsibly serve a targeted segment of creditworthy borrowers with lower-down payment mortgages by taking into account “compensating factors.”

Bottom Line

If you are saving for either your first home or that perfect move-up dream house, make sure you know all your options. You may be pleasantly surprised. Line-Break

30 Year Fixed Rate Mortgage Rate Spikes 14 Basis Points


Newton, MA. top Brokers, Sotheby’s Newton, MA.

30-Year Fixed Mortgage Rates Spike 14 Basis Points, Largest Rate Hike Since November 2013; Current Rate is 4.19%, According to Zillow Mortgage Rate Ticker

 

MEANING

SEATTLE, Sept. 16, 2014 (GLOBE NEWSWIRE) — The 30-year fixed mortgage rate on Zillow® Mortgages is currently 4.19 percent, up 14 basis points from this time last week. The 30-year fixed mortgage rate rose steadily last week, peaking at 4.30 percent on Sunday before easing down to the current rate.

“Last week, rates hit a five-month high on anticipation that the Fed’s policy statement might suggest an earlier than expected hike in the federal funds rate,” said Erin Lantz, vice president of mortgages at Zillow. “This week, any significant movement in rates will stem from the Fed’s Wednesday announcement, which could reveal how quickly the federal funds rate will rise after the stimulus program ends.”

Zillow’s real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers on the Zillow Mortgages site, and reflect the most recent changes in the market. These are not marketing rates, or a weekly survey.

The rate for a 15-year fixed home loan is currently 3.26 percent, while the rate for a 5-1 adjustable-rate mortgage (ARM) is 3.03 percent.

Purchase Mortgage Application Activity

Zillow predicts tomorrow’s seasonally adjusted Mortgage Bankers Association Weekly Application Index will show purchase loan activity decreased by 4 percent from the week prior. Zillow combines loan requests made on Zillow Mortgages last week with the previous week’s Mortgage Bankers Association (MBA) Weekly Application Index to predict the MBA’s Weekly Application Index for purchase loans, which will be released tomorrow. For more information about this prediction, visit http://www.zillow.com/research/mortgage-app-index-part-one-7016/.

Below are current rates for 30-year fixed mortgages by state. Additional states’ rates are available at:http://www.zillow.com/mortgage-rates.

State Current
30-Year
Fixed Rate
(09/16/14)
Last Week’s
30-Year
Fixed Rate
(09/09/14)
Change in
Basis
Points
California Mortgage Rates 4.18% 4.08% +10
Colorado Mortgage Rates 4.17% 4.07% +10
Florida Mortgage Rates 4.19% 4.07% +12
Illinois Mortgage Rates 4.20% 4.08% +12
Massachusetts Mortgage Rates 4.26% 4.10% +16
New Jersey Mortgage Rates 4.14% 4.01% +13
New York Mortgage Rates 4.28% 4.12% +16
Pennsylvania Mortgage Rates 4.19% 4.08% +11
Texas Mortgage Rates 4.18% 4.02% +16
Washington Mortgage Rates 4.15% 4.04% +11

 

Why Are the Letters ‘CFPB’ and ‘QRM’ So Important?


 

Newton, MA.  realtor….West Newton Hill, Realtor

 


I
‘d like to pass this on….

As professionals in the housing market, we must be able to give expert advice to our clients in order to guarantee that they make the best decisions for themselves and their families.

When talking to potential purchasers, we must be able to intelligently discuss the changes that will be taking place in 2013 because of CFPB and QRM. These changes will have a major impact on the mortgage process and a buyer’s ability to finance their purchase of a home.

Consumer Finance Protection Bureau (CFPB)

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 created the CFPB. Its purpose is explained on their website:

“The central mission of the Consumer Financial Protection Bureau (CFPB) is to make markets for consumer financial products and services work for Americans — whether they are applying for a mortgage, choosing among credit cards, or using any number of other consumer financial products.”

The site goes on to explain:

Like a neighborhood cop on the beat, the CFPB supervises banks, credit unions, and other financial companies, and we will enforce Federal consumer financial laws.”

In 2013, the CFPB will put its stamp on the mortgage industry in the United States. We should keep ourselves aware of the changes that will be coming and their impact on the home purchase experience. One of these changes will be QRM.

Qualified Residential Mortgage (QRM)

The Consumer Financial Protection Bureau (CFPB) and other federal agencies are currently developing guidelines for loans that will have a statistically lower risk of default, based on the underwriting guidelines and product features built into the loan. A loans meeting these new guidelines will be a qualified residential mortgage.

What impact will this have on the mortgage market?

According to the Qualified Residential Mortgage Resource Center:

 “The bottom line is that borrowers who fail to meet the basic criteria for a qualified residential mortgage will have a harder time finding a loan, when compared to borrowers who do meet those criteria. They might end up paying a higher interest rate, as well…Financial analysts from J.P. Morgan Securities have estimated that borrowers might pay up to three percentage points more for loans that are subject to risk-retention (i.e., loans that don’t meet the definition of a qualified residential mortgage).” 

 

Newton Real Estate Reacap 2012 vs 2011


Newton, Realtor, Best Newton Realtor, Listing and Buyers Agent Newton, MA.

Yes the real estate market in Newton is better!  Inventory is extremely low…homes are going under agreement at an accelerated pace.

January 1, 2011 through August 15, 2011

335 Homes Sold

Average List Price – $978,000

Average Sale Price – $944,000

Median Sale Price – $$785,000

January 1, 2012 thru August 15, 2012

425 Homes Sold

Average List Price – $996,000

Average Sale Price – $$965,000

Median Sale Price – $804,000

These numbers correlate to a 20% increase in volume and a 2% increase in sale price.  Currently there are only 125 single family homes on the market.  Since this is a supply and demand business I would expect the sale price to continue on an upward trajectory, however, I do not see prices increasing at the fast pace they did in the old days.  Inventory will increase after Labor Day but 2012 is the first sellers market since 2007.  Seller’s,  get your home ready for sale, and I do mean ready; painted, de-cluttered, clean, repairs made.  Houses in excellent condition are selling at a considerable premium!  Conversely, houses that are not well cared for sell at a discount.  If you have $2,000.00 — spend it getting your house in order, you will get it back and more…!  Paint is an amazing tool!

Mortgage News: Taking Advantage of Low Rates


Newton, MA.  real estate,  Newton, MA.  homes for sale, Newton, MA.  seller’s agent, Newton, MA.  Top Realtor
Mortgage News 
Taking Advantage of Low Rates
By VICKIE ELMER of The NYT – 6/14/12

The mortgage market seems to have been dancing its own version of the limbo, as interest rates headed lower and lower for six consecutive weeks.

 
Although they inched up this past week, home buyers and refinancers may be wondering how low rates can go — and how they can capture the best rates now.

“Mortgage rates tend to fall when there are concerns about the economy,” said Jed Kolko, the chief economist for Trulia, the housing information Web site.

Lately, those concerns have centered on the economic and fiscal woes in Europe, especially in Greece and Spain — along with slow job growth and weaker-than-usual corporate profits in this country, as noted in a recent Freddie Mac market survey.

Many economists are forecasting that mortgage rates will rise again later this year as the American economy gradually improves and as more global investors turn to the United States as a safe haven for their money.

“It’s really tough for rates to go much lower,” said Cristian de Ritis, the director of Moody’s Analytics. “It’s almost unbelievable that you can get a 30-year mortgage at that rate.”

The average rate on a 30-year fixed-rate mortgage fell to a record 3.67 percent nationwide in Freddie Mac’s June 7 survey, though it rose to an average 3.71 percent on Thursday. The rate had averaged 3.9 percent just three months earlier and 4.5 percent a year earlier.

Mr. Kolko said the uptick was not entirely unexpected. “We’re in the midst of so much short-term uncertainty,” he said, adding that “no single week-over-week change can be taken as the start of a long-term trend.”

Mr. de Ritis said that rates could possibly fall further, perhaps as much as a quarter of a percentage point, but he added that it was more likely that they would start “a slow drift” upward. In six months, the rate on the 30-year fixed-rate mortgage could be at 3.8 to 3.9 percent, he predicted, and a year from now, 4.1 to 4.2 percent.

“If the economy does recover more aggressively than what we think, or what investors think,” he said, “then the Fed will likely raise rates.” The next two Federal Reserve Open Market meetings, which determine credit policy, are scheduled for June 19 and 20 and July 31 and Aug. 1.

Those planning to refinance or buy a home in the next two or three months, meanwhile, might want to consider locking in their mortgage rate now.

Borrowers with rate lock-ins, with a built-in deadline, often receive priority treatment from lenders, according to Russell Tucker, a senior vice president of Investor Home Mortgage in Short Hills, N.J. By having a lock-in, he said, a borrower is telling the lender that he or she is serious about closing soon. “If you’re not willing to lock in the interest rates,” Mr. Tucker said, “you’re not doing the push-ups.”

Lock-in costs and policies vary widely, and are based partly on the time frame you want covered.

Most people will need a 60- to 90-day lock. In New York State, especially, refinancing can take longer if the borrower is transferring the balance on a loan to a new lender to avoid paying a second mortgage transfer tax, a process known as “mortgage assignment.”

If interest rates continue to fall during the lock period, borrowers can ask their lenders to rewrite the rate lock, at an additional cost, or they can obtain a “float-down” provision in the original agreement, industry experts say. A lock with a float-down agreement allows the borrower to change the rate, often only once, before closing on the mortgage. This option is generally more expensive than a standard lock.

Although mortgage rates are at historic lows, borrowers need to understand that the advertised rates are generally for those with the best credit. “If your credit is in the mid-600s instead of the mid-700s, that could be as much as an extra percentage point on your mortgage rate,” Mr. Kolko said, referring to the widely used FICO credit score.

And if you’re in the New York area and borrowing more than $625,500 — the maximum allowed for loans resold to Fannie Mae or Freddie Mac — you will be obtaining a “jumbo” loan, which tends to carry higher rates.

Harvard Study : 2012 Marks The Start Of “True Housing Market Recovery”


Newton Mass homes for sale.  Newton, MA. Buyers agent, Newton, MA. seller’s agent, Newton, MA. Realtor

 

Mortgage Rates are at historic All-Time Lows today!

Housing Market Showing Positive Signs

Harvard University’s Joint Center for Housing Studies says stabilizing home prices will boost single-family home construction throughout 2012.

The State of the Nation’s Housing 2012 report highlights several areas which suggest that U.S. housing markets are in recovery.

  • Sales of homes were up 5.2% in Q1 2012 as compared to Q1 2011
  • Sales of new construction homes were up 16.7% in Q1 2012 as compared to Q1 2011
  • Housing starts were up 16.6% in Q1 2012 as compared to Q1 2011.

The report also found that building permits for single-family homes were up by 16.9% between Q1 2011 and Q1 2012. Building permits can be a strong indicator of home construction levels.

Echo-Boom Generation Driving Future Sales

It’s not just raw housing data that’s improving. Buyer demographics look favorable for long-term housing trends, too.

An estimated 84.7 million young adults in the “Echo Boomer” generation, the oldest of whom turned 25 in 2010, are expected to enter the housing market within the next 20 years. The Harvard study states that, as housing markets improve, more “fence-sitting” young adults will convert from renters into first-time home buyers.

Obstacles remain for the housing market overall, including a backlog of foreclosed homes. However, the report’s conclusion that concludes that “2012 will mark the beginning of a true housing market recovery” is not at all far-fetched.

Today’s home buyers face a shrinking home supply but, with mortgage rates low and lots of low down payment options available, timing could be right to buy a home. If the Harvard study is right, by next year, home values — and mortgage rates — will be higher.

 

 

Americans See Biggest Home Equity Jump in 60 Years: Mortgages


Newton, MA. Homes for sale.  Buyer Agent, Newton, MA. , Seller Agent, Newton, MA.

By Kathleen M. Howley – Jun 14, 2012 12:00 AM ET

 

Americans are digging themselves out of mortgage debt.

Home equity in the first quarter rose to the highest level since 2008 as homeowners taking advantage of record-low borrowing costs to refinance their loans brought cash to the table to pay down principal. The gain in percentage terms was the biggest jump in more than 60 years, according to an analysis by Bloomberg of Federal Reserve data.

Enlarge image

Residential mortgage debt peaked in 2007 at $10.6 trillion, doubling in six years, according to Fed data. Since then, it has fallen 7 percent as the value all residential property has dropped 23 percent. Photographer: Daniel Acker/Bloomberg

http://www.zurichna.com

Buy a link

It’s the strongest sign yet that Americans’ home-loan debt burden is beginning to ease after the record borrowing that created, and ultimately popped, the housing bubble, leaving almost a quarter of homeowners with mortgages owing more than their properties were worth, said Richard DeKaser, deputy chief economist at Parthenon Group LLC in Boston. Half the mortgages refinanced in the fourth quarter reduced loan size, a record, according to Freddie Mac, the government-owned mortgage buyer.

“The willingness of homeowners to carry housing debt has been radically altered,” said DeKaser, chairman of the American Bankers Association’s Economic Advisory Council. “When the market was booming, a mortgage was used as a leveraging tool, and now it’s seen as a risk.”

Measured as a share, rather than in dollars, homeowner equity was 41 percent of U.S. residential property value in the first quarter, including homeowners who don’t have mortgages, according to the Fed study released last week. The last time the share was that high was in the third quarter of 2008.

‘Bubble Burst’

“People got too overleveraged in the boom years, and that left them with too much debt when the bubble burst,” said Paul Miller, a managing director with FBR Capital Markets in Arlington, Virginia. “Now, they’re trying to put themselves back on solid ground.”

Residential mortgage debt peaked in 2007 at $10.6 trillion, doubling in six years, according to Fed data. Since then, it has fallen 7 percent as the value of all residential property has dropped 23 percent.

Americans aren’t just bringing money to the table when they refinance their mortgages. Many also are choosing to shorten the term of their loans, which increases monthly payments. The average mortgage term fell to 27 years in March and April from 29 years February. Almost all U.S. mortgages have either 30-year or 15-year terms. When the average falls, it shows more people are choosing the shorter period.

The average U.S. rate for a 30-year fixed mortgage has tumbled since early 2011 to last week’s record 3.67 percent and refinancing applications are at a three-year high. The average 15-year rate declined to 2.94 percent.

Lackluster Recovery

DeKaser of Parthenon attributes the reduction in mortgage debt to a “fear factor.” A lackluster recovery that still has one of every 15 people unemployed has persuaded some borrowers of the wisdom of thriftiness, he said.

“People are worried about falling home prices and they’re worried about the economy,” said DeKaser. “If they can afford it, they’re paying down their mortgages instead of buying things because it makes them feel like they’ll sleep better at night.”

Home prices tumbled for six straight months through March to the lowest level in a decade, 35 percent below the peak prices of the housing boom, according to the S&P/Case-Shiller price index of 20 U.S. metropolitan areas. A 3.4 percent increase in home sales last month may signal prices are beginning to stabilize, according to Eric Belsky, managing director of Harvard University’s Joint Center for Housing Studies, in its “State of the Nation’s Housing” report issued today.

Economic Growth

The U.S. economy probably will grow at a 2.2 percent pace in 2012, the third year after the end of the recession, according to the median forecast of 93 economists surveyed by Bloomberg. That compares with a 3.9 percent average expansion rate in the third-year period following the 1982, 1994, and 2001 recessions. In 2013, the growth rate probably will be 2.4 percent, according to the economists’ average estimate.

Homeowners who are able to shorten the terms of their loans or reduce their balances when they refinance are the lucky ones, said Chris Christopher, a senior economist at IHS Global Insight in Lexington, Massachusetts.

“Homeowners who are paying down mortgage debt are the survivors,” said Christopher. “They probably didn’t lose their jobs, so they’re in a better position to do that.”

About 23 percent of mortgage holders are underwater on their loans, meaning they owe more than their homes are worth, according to CoreLogic Inc., a mortgage data and software firm in Santa Ana, California. About 2.1 million properties were in foreclosure in April, according to Lender Processing Services, a mortgage data firm in Jacksonville, Florida.

‘Bubble Days’

“Consumers’ view of the housing market clearly has been radically changed since the bubble days,” said Dean Maki, chief U.S. economist at Barclays Plc in New York. “We saw what happened to people who were way overleveraged.”

“Paying down mortgage debt is bad for economic growth — putting your money into your house usually means you’re spending less,” said FBR’s Miller. “It’s good for our economic health in the long run, though, because it improves household balance sheets.”

Retail sales in the U.S. fell in May for a second month, prompting economists to cut forecasts for economic growth as limited job growth and income gains hold back consumers. The 0.2 percent decrease matched April’s drop that was previously reported as a gain, Commerce Department figures showed yesterday in Washington.

National Income

Annual increases in national income slowed to $581 billion in 2011 from $693 billion in the prior year, according to the Bureau of Economic Analysis. The first quarter’s $127.7 billion gain puts 2012 on course for a $510.8 billion increase, the lowest since income dropped in 2009.

“People are looking around them and seeing people they know getting their salaries cut or losing their jobs,” said Miller, a former examiner with the Federal Reserve Bank of Philadelphia. “If you want security, you can put your money in a savings bank for half a percentage point, or you can pay down your mortgage.”

FBR’s Miller said when he refinanced his home loan last year, he “brought a big check to the table” to reduce his mortgage balance. The reason?

“So my wife would leave me alone,” said Miller. “Just like a lot of people, she wants to have no mortgage debt.”

To contact the reporter on this column: Kathleen M. Howley in Boston at kmhowley@bloomberg.net.

Mortgage Rates…..Best Ever!


Newton, MA.

Mortgage Rates: Path Paved

Mortgage rates improved last week amidst an atmosphere of major market uncertainty.

It wasn’t until Friday though, after exceedingly weak economic data, that consumer borrowing costs really rallied. This surprising positive development followed 10 straight sessions of unfriendly directional behavior. All of that negativity was essentially erased on Friday, leaving rates just above their best levels of the year.  CHECK OUT THE CHART

The rally didn’t end there though.  Over the weekend our nation’s political “leadership” finally put aside partisan opinions and came to an agreement on a long-term budget plan. Combine that with another round of unexpectedly weak economic data this morning and we’re looking at new 2011 consumer borrowing cost lows.

CURRENT MARKET*: The BestExecution conventional 30-year fixed mortgage rate has improved to 4.50%. Some lenders are even offering 4.375% but that quote carries with it additional closing costs.  On FHA/VA 30 year fixed BestExecution is 4.375% with some lenders willing to go as low as 4.25% (extra closing costs).  15 year fixed conventional loans are best priced at 3.75%. Five year ARMs are best priced at 3.25%. It’s important to point out an increased amount of variation in what individual lenders are quoting as their BestExecution rates.  This is a factor of volatility in the secondary mortgage market.  Unfortunately when volatility picks up in the secondary mortgage market, the cost of doing business get more expensive for lenders (hedging costs go up as lock desks peel off coverage at higher MBS prices). Those added costs are usually passed down to consumers.

THE WEEK AHEAD: With drama dying down over the debt ceiling debate and a U.S. default off the table, markets are ready to shift their attention back to economic fundamentals, which have been generally supportive of lower mortgage rates lately.  And while plenty of indicators do have the potential to improve the overall economic outlook,  they’re more than likely going to confirm a dour situation and keep a lid on rising mortgage rates. The most influential data-point of the week comes on Friday morning, with the release of the July Employment Situation Report. CHECK OUT THE FULL ECON CALENDAR

PREVIOUS GUIDANCE:   Floating in this environment is a crapshoot. Both stocks and bonds are maneuvering through major market uncertainties. Investors are focused on news headlines regarding U.S. budget issues, EU debt contagion concerns, economic data, and quarterly earnings. That puts the direction of mortgage rates at the mercy of factors that don’t exactly adhere to schedules or expectations. While we still view underlying economic fundamentals as being supportive of lower mortgage rates in the future, the short-term risks associated with a potential U.S. debt default leave us more inclined to advise locking, especially deals that must be ready to close in the next 10-15 days. This provides protection from rising rates and still gives your lender a chance to negotiate if rates decline.

NEW GUIDANCE: Floating in this environment is still a crapshoot, especially in the short-run,  but barring an unexpected turn of events on Capitol Hill, a path has been paved for our longer-term mortgage rate outlook to come true. That means we see lower mortgage rates in the not so distant future. It may not be a direct path lower though, there will be ups and downs along the way. Be prepared for continued volatility.

CAUTION: MND guidance is speculative in nature. We don’t have a crystal ball, we can’t predict the future, we can only share our outlook. Making the following considerations extra important……………………

What MUST be considered BEFORE one thinks about capitalizing on a rates rally?

1. WHAT DO YOU NEED? Rates might not rally as much as you want/need.
2. WHEN DO YOU NEED IT BY? Rates might not rally as fast as you want/need.
3. HOW DO YOU HANDLE STRESS? Are you ready to make tough decisions?

—————————-

*BestExecution is the most cost efficient combination of note rate offered and points paid at closing. This note rate is determined based on the time it takes to recover the points you paid at closing (discount) vs. the monthly savings of permanently buying down your mortgage rate by 0.125%.  When deciding on whether or not to pay points, the borrower must have an idea of how long they intend to keep their mortgage. For more info, ask you originator to explain the findings of their “breakeven analysis” on your permanent rate buy down costs.

*Important Mortgage Rate Disclaimer: The BestExecution loan pricing quotes shared above are generally seen as the more aggressive side of the primary mortgage market. Loan originators will only be able to offer these rates on conforming loan amounts to very well-qualified borrowers who have a middle FICO score over 740 and enough equity in their home to qualify for a refinance or a large enough savings to cover their down payment and closing costs. If the terms of your loan trigger any risk-based loan level pricing adjustments (LLPAs), your rate quote will be higher. If you do not fall into the “perfect borrower” category, make sure you ask your loan originator for an explanation of the characteristics that make your loan more expensive. “No point” loan doesn’t mean “no cost” loan. The best 30 year fixed conventional/FHA/VA mortgage rates still include closing costs such as: third party fees + title charges + transfer and recording. Don’t forget the fiscal frisking that comes along with the underwriting process.