The siren song of low rates advertised in all forms of media has created an oversimplification of the mortgage process. ‘What’s your rate?’ is the most common question that I receive as a mortgage professional.

1. What’s your rate?
The siren song of low rates advertised in all forms of media has created an oversimplification of the
mortgage process. ‘What’s your rate?’ is the most common question that I receive as a mortgage
professional.
There are at least 22 major factors that can affect your mortgage interest rate.
1. Primary residence vs. rental property
2. Amount of dollars of mortgage vs. value of property
3. Amount of the loan; jumbo or conforming
4. Mortgage program; Fixed or adjustable
5. Term of fixed rate mortgage; 10, 15, 20, 25 or 30 year fixed
6. Type of adjustable rate mortgage; 1, 3, 5, 7, 10 Year ARM
7. Type of ARM index for adjustable rate mortgages; LIBOR or Treasury
8. Purchase or refinance
9. If the mortgage will have an escrow or not
10. Down payment amount for purchase transactions
11. Source of down payment for purchase transactions
12. Income history and documentation
13. Credit history and documentation
14. Job history and documentation
15. Borrower is a teacher for purchase transactions
16. Property type
Single family home
High rise condominium or low rise condominium
Multi-family home; 2, 3, or 4-unit property
Town home
17. Warrantable or non warrantable new conversion or new construction condominium
18. Cash out refinance or rate and term refinance
19. Broker fee, origination fee or discount points
20. Length of rate lock period
21. Need for extended rate lock and type of rate lock program
22. Pre-payment penalty or no pre-penalty
If you plan to ‘shop’ for a mortgage, make sure you understand what you are ‘shopping’ for.
You must compare apples to apples.
For more information about interest rates, please call:
Robert Ratimorszky
GSF Mortgage Corporation
Mortgage Planner
Cell: 847-774-9657
ratimortgage@gmail.com