Mortgage loan

From: Ron Rothenberg <Homebase@world.std.com>
Subject: Mortgage loan
Date: Sun, 12 Jul 1998 19:09:49 -0400

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>From: Jerry Conley <jcrev@ncn.net>
>Subject: Mortgage Loan
>
>I will be looking to purchase a house at the end of this year that will be
>a second home until it is time to retire. Can anyone direct me to company
>that offers good competitive mortgage rates? The house will be in Florida.
>What is a good 30yr rate these days? It would be best for me to have a
>preapproved loan. Does it generally cost anything to get a preapproval? How
>far in advance can a preapproval be and still hold the rate?
>


if you'd like to try getting your mortgage online (possibly at a discount) try
eloan or homeshark.  Beyond that, shop around for fees and service.   

A good 30 year fixed conforming rate today if your credit history and other
risk factors are adequate.  There are now lenders who again do true risk-based
lending, and if your history is superb, they may lend at a lower rate.  YOu're
not likely to find that kind of loan at a bank or a mortgage company yet. 

Today's best rate is 6.625% with 2 points.  Ask me tom'w morning, and the
answer will be different - tom'w afternoon it will be different again.  
Particularly if you are looking at a large loan, consider hiring a Mortgage
Planner - a broker who works for YOU, gets a fixed fee (not a percentage of
the
amount of the loan) and will get you a loan at wholesale rates + a fee
(usually
$1000-$2000) -- usually that is much cheaper than paying the retail price of a
loan. 

Preapproval ALWAYS pays - it is the single best negotiating tool you can have
with a seller - over half the time it has always saved my client money in
negotiations with the seller, and made their offer more competetive with other
offers. It will save you lots of aggravation, too -- do your negotiations with
the lender when you don't desperately need them. 

Frequently it costs nothing to be preapproved, but even if it's $50-$250, it's
worth it.  the savings will likely be much higher. 

Generally you can hold a rate without extra cost for 60 days, but you may not
always wish to.  You can "hold" a rate for as long as you like, for a fee,
which will increase as your lock period increases.  Also generally, you don't
want to. 

Consider loan products OTHER than 30-year fixeds.  Though they are the most
popular and the most profitable for lenders, they aren't always what suits
your
needs and goals. 

Best wishes, 

- -rsr-
Ron Rothenberg, CFP
Exclusive Buyer Broker
Belmont, MA 02478




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