Jimmy Vercellino is an experienced Phoenix mortgage lender. He and his team work hard to provide a timely, efficient and excellent home loan process for buyers. As a loan specialist, Jimmy manages the entire process for his clients, making the home buying experience a pleasure instead of filled with stress. Visit http://phxhomeloan.com The Vercellino team operates a boutique-style mortgage branch with a specific culture centered around “serving families”. He is able to originate loans in 46 states and his bank maintains a full line of conventional, government (FHA and VA) and jumbo loan products. He has received several loan production awards including National Top 1% Mortgage Broker Award. Phoenix Mortgage Lenders Jimmy V NMLS# 184169 5050 North 40th Street Phoenix, AZ 85018 480-800-8387 Jimmy@phxhomeloan.com

2. When planning to buy
a home, one of the
first things potential
home buyers research
is current home
interest rates.

3. What may seem like a
low interest rate can
add up over the life of
a loan, especially
when many loans go
from 20 to 30 years.

4. Here is some
information on interest
rates, including the
current averages at
well-known banks …

5. … what makes bank
rates fluctuate and
what determines what
interest rate a
homebuyer pays.

7. When borrowers take out a
mortgage loan, they have
to pay back the principal,
which is the original
amount of the loan, as well
as interest.

8. The amount of interest
they pay is based on the
interest rates that are in
effect at the time of the
loan.

9. One thing many
homebuyers don’t
understand is that there is
a difference between the
interest rates and the APR.

10. The APR is generally
slightly higher than the
interest rate.

11. • Interest rate is the
amount you’ll pay to
the bank each year.
It’s based on the current
interest rate and the
amount of the loan.
For instance, a customer
borrowing $100,000 at a
4% interest rate would
pay about $4,000 per
year in interest.

12. • APR (annual percentage
rate) is the amount a
borrower pays back to the
bank each year in interest
and additional fees which
include points, loan or
mortgage broker fees and
additional charges.

13. Here are the current
interest rates at a well-
known back in the U.S. for
different loan types and
terms as of June 2018.
15-YEAR FIXED RATE
Interest rate is 4.250%
APR is 4.371%

14. 20-YEAR FIXED RATE
Interest rate is 4.625%
APR is 4.691%
30-YEAR FIXED RATE VA
Interest rate is 4.500%
APR is 4.812%

15. 30-YEAR FIXED RATE
Interest rate is 4.750%
APR is 4.810%
7/1 ARM
Interest rate is 4.375%
APR is 4.755%

16. 5/1 ARM
Interest rate is 4.250%
APR is 4.791%

18. Interest rates have
fluctuated quite a bit in the
past decade. We tend to
blame it on the economy,
which is true in a sense.

19. When the economy gets
worse, the interest rates
increase and vice versa.
While the economy does
affect interest rates, it goes
a little deeper than that.

20. Below are the main factors
that make interest rates
fluctuate.

21. • ECONOMIC GROWTH
This is how the economy
is growing or how much
money borrowers need
and how much lenders
can give.

22. • FISCAL POLICY
This is how the
government spends their
money and how they pay
for the things they buy.

23. • MONETARY POLICY
This is when the
government uses its
authority to control the
availability and supply of
money.

24. • INFLATION
This is the changing of
prices and the change in
purchasing power.

26. An individual who wants
to borrow $50,000 and
pay it back over ten
years may assume the
monthly payments
would be approximately
$416 ($50,000/120
months = $416.66).

27. This would be the
amount if the customer
wasn’t charged interest
on the mortgage.

28. If the borrower is
charged 5% interest, the
interest charges (50,000
X .05 = $2,500) would
be divided by 12 to get
the monthly interest
amount for a year.

29. Because each payment
made decreases the
balance, the interest would
be lower each year.

30. Note: It’s a little more
complicated than that, but
by using the formula shown
you’ll get a good idea of
how much you should add
to your estimated payment
for interest.

31. JimmyVercellino, an experienced
Phoenix mortgage lender, works
hard to provide a personalized
home loan process for you.

32. Options include FHA andVA
loans, fixed / adjustable rate
mortgages, Jumbo loans and
more.