Mortgages from Performance Mortgage

Understanding mortgages and how they work is much easier than you may think. Many times the subject is over complicated causing confusion on behalf of the person who is looking to purchase a home.

Rates
Let's start with rate. The rates that you see to the right of this page are today's average national mortgage interest rates. Those rates have very little to do with the "national interest rate" announcements you hear about on the news. The Fed can lower rates and national mortgage rates can go up. It's all based on the performance of the economy and supply and demand.

Brokers vs. Banks
There are two different choices that you have when you are looking to obtain a mortgage. You can try a bank or a mortgage broker.

What's the difference? Well, a bank will offer what they currently have available. There is not going to be a large number of different programs and deals that they can put together. What the sales person that you are speaking with was given in the morning is what you're going to be offered.

A broker is basically hired to sell money for banks and other investors. One mortgage broker can literally have hundreds of investors. Why does this benefit you? Because all of those investors want to lend you money and are willing to compete for it. The bank is assuming that because you came to them, you are going to use them. A broker who will work hard for you will be able to shop your information around to get the best deal possible. And the best part is that the broker will pull your credit just one time... there won't be multiple inquiries on your credit report that will lower your credit score.

Types of Mortgages
We will help you to decide whether a fixed rate, adjustable rate or a balloon mortgage is the best for you in your situation. There is no answer to what the "best" is without looking at many different life factors. Fixed rate mortgages are guaranteed to stay the same rate for the life of the loan. Adjustable rate mortgages (ARMs) have a rate that is adjustable depending on what national mortgage rates do. This could be good or bad for you depending on what the market looks like now. Another note about ARMs is that they typically start with a lower rate than a fixed rate mortgage. Balloon mortgages also commonly have a lower rate, but they have a date attached to them where the loan is going to become due in full.

So much more
There are so many other things that you may have questions about including rate locks, floating rates, and much more. We would love to answer any questions that you have. Simply give our offices a call at 1-866-488-1350 or visit our contact us page.