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    Email: joe@twincityhomeloans.com

  • Rates / Costs

  • Mortgage Interest Rates and Closing Costs

    Rates displayed below are current national averages for a best case customer obtained from a third-party. This is not your guaranteed rate. Your actual rate may vary based on many factors and may be lower or higher. Assumptions: For conventional loans and jumbo, at least 20% down and a >740 credit score for conventional loans. For FHA, at least 3.50% down. For both FHA and VA, a minimum credit score of >660. Standard 1% loan origination. Rates subject to change until locked. Not an offer to enter into an interest rate lock agreement.

     

    Mortgage Loan Closing Costs

    All mortgage loans have closing costs. Appraisal, credit report, state taxes, country recording fees, lender costs, title company costs, your first years home owners insurance, and even pre-rated property taxes.

    These closing costs have to be paid by someone, and that someone is always you. There are various ways to pay closing costs:

    • Out of pocket
    • Roll into loan (higher loan amount – Also known as seller paid closing costs)
    • Roll into interest rate (higher interest rate offsets out-of-pocket costs today)
    • Any combination of these

    Rate vs Costs

    You can pick any interest rate you like higher or lower than today’s market rate.

    • Selecting a lower interest rate will come with higher initial closing costs, known as discount points.
    • Selecting lower closing costs means a higher interest rate.

    None of these options are automatically good or bad. It just really depends on the borrower’s wants, needs, and goal.

    For example, a first time home buyer – just barely having enough for down payment, has limited resources to also pay closing costs. Therefore rolling the closing costs into the loan, while resulting in either a higher interest rate or larger loan amount, is still a great option.

    A move up buyer, selling their existing first home, and making a large profit might decide to buy down the new loans interest rate because they have the additional money today, and the intend to live in the new home a long time. Easily recovering the additional costs up-front with lower payments over the life of the loan.