The most common asked question in my 30 year career! What are rates? What is the interest rate today? This was a very easy question to answer when I started my career because back then we had one rate (basically) for each loan type FHA, VA, USDA and Conventional. Here is my struggle with this simple question. The answer depends on so many things. What is the loan type, how long do you need to lock the interest rate for (30,45,60,75 days) what is the down payment amount and the MOST important factor on interest rates is WHAT IS YOUR CREDIT SCORE?
Since mortgage loans are bought and sold in the bond market, interest rates have become very sensitive to credit score. We can do loans from a score of 580 to 840! How do you answer this question HONESTLY.
One option is to put the best interest rate on your website with an asterisk *, then put in small print the details of the loan. Something like “interest rate based on a conventional loan, with a credit score of 780, 20% down and a 15 day lock. Actual interest rate may vary depending on terms of the loan.” Personally, I find this misleading. I prefer to tell the truth, like this post, to my customers.
The ONLY way to accurately answer the rate question is to have all the details of the loan and explain that to the customer. I actually show customers our search engine that searches over 30 investors for the best interest rate. I also explain the rates and the factors impacting the rate. I then show them what a difference in their credit score will do to the interest rate we can offer. IF this makes a difference, we will go over ideas and suggestion on how to quickly improve their credit score so they can improve their rate.
I never avoid the question “What are interest rates today?” and I know I lost many of you before you got to this point. I prefer to be honest rather than get you in the door and then have to explain the rate and why it is different than what you saw on a website.
PS: I don’t sell rates. I provide a service and the most competitive price I can. We make sure our customers apply for the best loan to meet their financial needs AND WE MAKE SURE THAT THE LOAN CLOSES ON TIME. The way we treat and service our customers is second to none and we do this at the going rate!
Call The Scott Miller Team at 612-751-7268 to find out your rate.