CodeMark TV Episode 27
So we’re talking about low interest rates
What’s the lowest interest rate I can get?
Now here’s the thing, you’re constantly bombarded online and on TV and on radio and everywhere else. You hear from your neighbors about the low interest rate that they got, or some low interest rate that some mortgage company can offer. But, they don’t ever tell you what that fine print is. And, there’s fine print to everything.
So what’s the catch?
Here’s the catch. What you need are 3 things; a credit score of 750 or higher. You also need a down payment of 20% or greater.
Yes, as you’ve seen in other episodes, and I’ll talk about them in future episodes, you can get a loan with as little as 1% down. But keep in mind, a bank is looking at you as a potential business partner. The less you come with, the less financial strength you have (from their perspective). So, stepping into the game with 20% or more, well guess what? They’re going to award you with a low interest rate.
And what’s the last piece?
A loan amount of $165,000 or greater. Yes, that is a factor. Most consumers aren’t aware of this, but your loan is going to get packaged and it’s going to get sold on wall street. The investors are always working behind the scenes when you’re locking your interest rates. They are packaging the loans into real estate portfolios so they can sell them to wall street.
The juicier the loan is ($165,000 or greater), while still under the jumbo limit, the more appetizing it will look to the bank.
So there you have it. Three things:
- A credit score of 750 or greater
- A down payment of 20% or more, and
- A loan amount of $165,000 or higher
That’s it! You go into any bank with that, or if you come in here, you’re going to get the lowest interest rate, period.
Until next time, I’m Mark MacInerney, President and CEO of Codemark Financial. You can catch me Friday Live, Facebook, Lunch with Mark, 12 noon central standard time, sharp. You can also catch me any time you want here on Youtube on our Codemark Financial CMTV Channel, and you can also check us out on Instagram #YourSuperStar. I’ll see you!