Date: February 1, 2021
Category: Blogs,Mortgage Tips & Advice
What’s your best rate?
Used to be that we could answer this question easily, however these days that’s not the case.
Lately with rates being so low, that seems to be the first question I am asked.
The simple answer is always it depends….
The rate your friend received on the purchase with 5% down payment will not be the same rate you receive on the refinance of you home and here is why.
I’ve tried to break it down as much as possible without complicating things and so you can see from below that a person who is purchasing can receive a different rate, it can depend on down payment, amortization, insured, conventional etc
PURCHASE or SWITCH/TRANSFER
5-19.99% down payment
20-25% down payment with 25 year amortization
25-30% down payment with 25 year amortization
30-35% down payment with 25 year amortization
More than 35% down payment with 25 year amortization
20% down payment or more and require a 30 year amortization
Then it’s important to note that if you are refinancing, this is very different from a purchase and it’s not an insurable product and so the rate is often times higher.
REFINANCE
More than 20% equity and up to 30 year amortization
Then we have a totally different ball game when it comes to stated income, self-employed, rental properties. Often time there are premiums on these type of lending products
RENTAL PROPERTIES
STATED INCOME
So you can see when you ask me WHAT’S YOUR BEST RATE?
I can’t answer that question without a little more information.
So next time you are talking to your mortgage broker think of it like when you visit the doctor.
You walk in and say, Doctor, my throat hurts- give me medicine.
Before the doctor can prescribe something,
He or she will ask you a slew of questions – that’s what we will do too.
In order to receive what you are looking for, you need to know that we will ask you some questions and your rate may differ from your friends, co-worker, brother, etc if the situation or purpose is different
I truly hope that this helps de-mystify the WHAT’S YOUR BEST RATE question.
If you have any questions as always, please reach out.
Want to connect?
Email me at ana@askanacruz.ca | Call or text 905-870-0513
Alternatively our office can be reached via text at 289-769-8864
