Great article here that accurately reflects what it's like today. It used to be easy to give rate quotes to clients within the first 10 seconds of a phone call, but that has completely changed in the last 6 months-year.
I feel a little car-salesman-y (the sleezy ones, not the good ones
) when I tell potential new clients I need an application before I can give an accurate rate quote, but the fact is, there are so many factors to consider now. The worst thing I can do is over-promise and under-deliver.
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Looking for your best mortgage rate? Here's 20 questions to ask"
Quote:
1) What’s the term?
- Mortgage contract length (“term”) and rate type (fixed or variable) are usually the biggest factors impacting your rate.
- As of this writing, the cheapest five-year fixed rate, for example, costs 50 basis points (bps) more than the cheapest five-year variable rate. (Note: 100 basis points equals one percentage point, so 47 bps equals 0.47 percentage points.)
2) Is the mortgage for your primary residence, a second home or a rental that you won’t live in?
- If you rent out the property and don’t live there, you’ll pay up to 25 bps more than if it were your primary residence.
- The cheapest rates are seldom available on second homes or unusual properties.
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