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Tacoma, WA - Mortgage Rates

Interest rates for home loans under $506,000 in Pierce, King and Snohomish counties continued their trend under 5.00% for the second straight week.  We are starting to see a lot of refinance activity, especially those with equity and good credit scores.  What some people don't realize is that there are several factors that determine the final interest rate they will pay on a mortgage.  Gone are the days you can call and just ask "What's Your Rate?"  Here is a brief list of all the factors that can increase or decrease the interest rate you will pay on a mortgage or home loan:

1. Credit Score -Your most important score is the middle score.  For example if you have a high score of 759, a mid score of 739, and a low score of 702, the 739 becomes your "decision score"  The next step is to look at which bureau is reporting your mid score.  If you notice any errors or discrepancies from that bureau, for $30.00 you can request a "rapid re-score" If you can get your mid score up by just 1 point, it could save you $1,000 in fees on a $400,000 cash out refinance loan.  Not a bad investment...

2. Loan To Value Ratio (LTV) -This is the amount of your new loan divided by the value of your home.  Anything below 60%LTV is usually golden.  Once you go above 60%, then the interest rate depends on the next factor - Purchase or Refinance. 

3. Purchase or Refinance - The interest rates for refinance and purchase home loans can be different depending on factors 1 & 2.  As a general rule, purchase home loans have less factors that determine the final interest rate.

4. Refinance - Rate Term vs Cash Back - This factor applies to refinancing when you are paying off any debt other than the underlying first mortgage.  Once you start paying other debt with the exception of a purchase money second mortgage, your interest rate quote will likely go up.  This includes things like HELOC's, credit cards, car loans and other personal debt.  Plus there are several new rules coming Jan 1, 2009 that limit your ability to do a rate term refinance if the previous loan you just closed was a cash out refinance.  The new rules require you to wait 6 months before your eligible to refinance again.  Also if you home was listed for sale on the MLS, certain rules require you to wait 6 months before you can refinance.

5. Loan Amount - Loans under $417,000 generally have the lowest interest rates.  Although the new High Balance loans up to $506,000, with low loan to values under 75% LTV, and a high credit score will qualify for the lowest interest rates.

6. Subordinate Liens - If you plan on keeping your current Home Equity Line of Credit open and having your lender subordinate their lien, in some instances your interest rate may be higher.

7. Paying Property Tax & Insurance - If you plan on paying your own property tax and insurance, most lenders will charge an extra .25% fee to do so.  That's $750.00 on a $300,000 loan.

All Tech Mortgage Inc. is your gateway to great mortgage products from Washington State's top mortgage lenders. We shop, compare rates & fees and connect you with the best mortgage banks in the Northwest. The interest rates we quote are typically .25% - .50% lower than most national mortgage companies. Plus our fees are some of the lowest in the industry. 

We specialize in No Cost and Low Closing Cost Refinance home loans.  All Tech Mortgage offers true wholesale pricing from our lending partners.  At All Tech Mortgage, we never expect your business, but hope to earn it with our aggressive pricing, speed, and overall efficiency.