Maricopa Mortgage Rates

Maricopa County Mortgage Rates

After you have applied for your mortgage, you will receive some paperwork that you are required to sign to go through with the mortgage process. These documents are required by the federal government to disclose the terms of your loan before closing. You may notice on some of your documents that the interest rate is different than what you agreed upon. There are going to be two main interest rates in your mortgage documents. The first is the note rate. The note rate is the interest rate you were quoted and is the rate with which your payment is determined. This note rate is the most important, so be sure to check that the note rate is the rate you were promised. The other rate that the bank is required to disclose is the annual percentage rate. The APR takes into account the points you will pay as well as other costs of the loan. This interest rate will typically be higher, but you will not be charged this interest rate, so don’t worry. The APR was designed to represent the entire cost of the loan in terms of the interest rate. This is a required disclosure by the federal government and, as long as you are aware of all the additional costs of the loan, should not be a big deal

Refinancing in Maricopa County

When choosing which bank to refinance with, it is important to examine all the costs involved in the process. First, there is the application fee which can be anywhere from $50-$500 depending on the lender. Be sure you ask before you apply what this fee is and how you can avoid it. Most banks require an appraisal of your home which you are charged for. This can cost up to $300 depending on the type of appraisal. If your bank requires a walk-through appraisal it can cost even more than that. Ask the lender when you apply if they require an appraisal and how much it will cost you. If you refinance through the same institution you have your current mortgage through, you can typically avoid this fee as they will not re-appraise. If you are required to pay points on your refinanced mortgage, this can add thousands of dollars to the cost of refinancing. You need to know up front if this will be required. You should also ask your lender how you can avoid closing costs. Closing costs typically add up to more than a thousand dollars but there are some ways to avoid them. Each institution is different but some offer no-closing-cost loans if you are refinancing with the same bank, taking money out of your home, or shortening your term.

FHA Mortgage Loans in Maricopa County

The FHA stands for the Federal Housing Administration. It was established during the Great Depression to make homes affordable for the average American. The FHA is not, in itself, a lending institution. The FHA simply insures higher-risk mortgages so that traditional lending institutions will approve the loan. The FHA also offers additional programs for down payment assistance. These programs are designed for first-time home buyers that have less than desirable credit and little to no savings. If you fit into these categories, ask your local lending institution about the FHA programs that it supports.