What is an FHA loan?

In 1934, the long road to recovery began for the U.S. economy. For the housing market, this meant the creation of the Federal Housing Administration (FHA) loan.

The loans issued under this program are insured by the federal government, decreasing the risk of loss for lenders. With its less stringent rules, more borrowers were able to qualify, which gave a boost to the housing market.

Much has changed since 1934, but the FHA loan has basically remained the same. Here are eight things to know about this government-backed mortgage.

1. Down payment as low as 3.5%

Unlike most conventional mortgages, which require 5-20% down*, the FHA loan can have a down payment requirement as low as 3.5%. This makes it much easier for lower income borrowers to purchase a home. There are even government-assisted programs available that offer grants for down-payments.

*Fannie Mae and Freddie Mac now offer a conventional mortgage program that requires 3% down.

2. Perfect credit isn’t needed

When making any large purchase, your credit score is an important number. When it comes to FHA loans, a credit score of 580 or higher will get you a down payment around 3.5%.

If you have a credit score between 500 and 579, you’ll have to put at least 10% down. For those with credit scores under 500, unless you qualify for “nontraditional credit history or insufficient credit”, you will probably not qualify for an FHA loan.

Also, if you have ever made an appearance on the governments’s Credit Alert Interactive Verification Reporting System (CAIVRS), you will have to clear your name to become eligible for an FHA loan.

3. Financial relief is possible

If the borrower is struggling to make their mortgage payments due to a legitimate financial hardship, the lender can choose to offer a temporary period of forbearance, a loan modification, or a deferral of part of the loan balance.

4. Lender must be FHA-approved

While the FHA does insure the loans, they don’t lend them, so borrowers must find an FHA-approved lender. Just like with conventional loans, lenders will offer different interest rates and fees on identical loan types.

5. Two-part mortgage insurance is required

All FHA loans require two mortgage insurance premiums. There’s an upfront premium, paid once the borrower receives the loan, which is 1.75% of the total loan amount.

Then there is the annual premium, whose title is somewhat deceiving as it’s paid on a monthly basis. The length of the loan, the amount borrowed, and the initial loan-to-value ratio (LTV) all affect how much a borrower will have to pay.

6. Funds for a fixer-upper are available 

The FHA’s 203k loan is geared specifically toward buyers who plan to purchase and renovate their home. Structural alterations, modernization and improvements to the home’s function, a roof replacement, and septic system repair are all eligible projects, along with many others.

7. No closing costs are possible

Closing costs are another upfront fee that can be challenging for some borrowers to pay. Recognizing this fact, the FHA permits sellers/builders/lenders to offer deals around closing costs.

8. Loan could be assumable

FHA loans can be assumable, meaning a buyer will purchase the home and take on the mortgage of the current owner. Everything is the same: the rate, the repayment period, the principal balance.

In the right circumstances, this process can be simpler and less costly than getting a new mortgage. It’s particularly attractive when rates are rising.

If an FHA loan sounds like the option for you, click here and get started today.

source: totalmortgage.com

4 Reasons Reverse Mortgages Aren’t Mainstream Products—Yet

Despite ongoing changes that aim to make the reverse mortgage a safer product for consumers and the Federal Housing Administration-insured program as a whole, the product still has some barriers to overcome in order to transition into a mainstream retirement planning tool.

Some of these barriers include the reverse mortgage’s upfront costs, misuse, the stigma associated with tapping home equity, and misconceptions of the product, according to John Salter, an associate professor of financial planning at Texas Tech University, who spoke during a recent webinar hosted by Reverse Mortgage Funding (RMF) and the Financial Experts Network.


Still, using a reverse mortgage will become more important in securing Americans’ retirement in the years to come, Salter and others in the financial planning community agree.

“Anybody doing work in the retirement world knows that home equity is going to have to be an important part [of the retirement equation] moving forward, because the baby boomer generation, especially, has big values and big equity tied up in their homes,” said Salter, who has spent years studying reverse mortgages.



Given the need to tap this equity, it’s important to acknowledge some of the barriers keeping reverse mortgages from becoming a bigger piece of the retirement puzzle. Salter and his peers shared four reasons the product hasn’t yet become a mainstay in portfolio strategies.

1. Costs

While a reverse mortgage doesn’t require a monthly mortgage payment, there are still costs associated with the loan.

“One of the issues that seemed to not make it a mainstream product was the upfront costs,” Salter said. “Prior to 2010, the [FHA] insurance fee was 2.5% of the home value. Plus the closing costs, insurance, appraisal fees, attorney fees, etc.”

That led many people, Salter included, to misunderstand the scope of the product, partly because it was so expensive relative to the average household income and home equity.

“It was hard to get around the cost issue and say, ‘Hey, this makes sense,’” he said.

However, today, the home equity conversion mortgage (HECM) has an upfront mortgage insurance premium (MIP) of 0.5% with the caveat that borrowers are limited to 60% of their principal limit during the first year.

“If you breach that, then you owe the original 2.5%,” Salter said.

Despite the costs, reverse mortgages can offer a number of benefits to retirees.

“It’s not totally free — which it shouldn’t be,” Salter said. “[But getting] over that and saying, ‘There are some benefits,’ [is key]. … I always say you get what you pay for.”

2. Misuse 

Over the years, the reputation of the reverse mortgages has been negatively impacted by borrowers who have misused the product.

One such example of this misuse is the ongoing non-borrowing spouse issue, Salter said. A common situation is as follows:

“There’s a 62-year-old husband and 60-year-old wife, he did the reverse mortgage, left the wife off, passes away after using all the proceeds and now the widow is left with repaying $200,000,” Salter said. “Stories say, ‘She’s losing her house because of a reverse mortgage.’ No, she’s losing the house because her husband did this without her and she’s selling the house to repay the loan.”



The Department of Housing and Urban Development (HUD) has been working to address such issues, but Salter said the issue at hand isn’t the product itself, but the way in which it’s used.

“I had a student who needed a credit hour to graduate and I said, ‘Get on the Internet and scour all the popular press. Find all the articles you can on reverse mortgages and find me one that says the product was wrong,’” he said. “She came back and said, ‘I couldn’t find one.’ She had lots of stories about the misuse [of reverse mortgages], … but nothing that would make me say there’s anything wrong with it. I think it’s just how it’s being used.”

3. Stigma 

For some time, owning a home has been the “American Dream.” To take away from that is a societal no-no, some say.

“In our society and culture, using home equity as part of retirement has been taboo — you don’t spend that,” said Dennis Channer, principal at Cornerstone Investment Advisors, LLC, during the webinar. “This concept of a course of last resort has permeated people, including myself, up until recently.”

There is a stigma associated with using home equity to fund retirement expenses, especially when someone’s home is paid off, Salter said, noting that some people feel like they’re getting back into debt by tapping their home equity.

4. Misconceptions

Finally, misconceptions of the product have kept reverse mortgages from becoming a mainstream retirement planning tool, at least for now.

“I’ll lose my home” and “the bank owns the home” are some of the common misconceptions tied to the loan.

However, with more financial planners educated on the loan’s benefits and how it works, consumers will start to have a better understanding of how a reverse mortgage might fit into their retirement plan.

In fact, the recent webinar was aimed at teaching financial advisors how a HECM loan could be used as a portfolio protection strategy.

The session — which offered the opportunity to earn 1.5 continuing education credits for Certified Financial Planners — joins other such initiatives meant to educate the financial planning world on reverse mortgages.

source: reversemortgagedaily.com

New FHA Home Loan Guidelines for 2015

If you need a low-down payment mortgage and you don’t have the best credit score, an FHA home loan can help you get the keys to homeownership. The FHA home loan program has been around since 1934 making homeownership affordable for many.

With the new year underway, the Federal Housing Administration recently announced changes to its program for 2015—changes that benefit many would-be buyers and anyone refinancing to an FHA home loan.

1. Reduced Mortgage Insurance Premiums

FHA home loans only require a 3.5% down payment, which has been a godsend for borrowers who can’t save the traditional 20%. Unfortunately, anyone who puts down less than 20% is required to pay an annual mortgage insurance premium (MIP), which is paid over 12 installment payments and included in the mortgage payment. Borrowers who pay MIP have higher monthly payments than those who don’t, but there’s good news for anyone who closes on an FHA home loan after January 26, 2015.

On January 9, 2015, the Federal Housing Administration announced an upcoming reduction in annual mortgage insurance premiums. For borrowers, this means more money in their pocket every month. This change applies to mortgages greater than 15 years. The reduction of 5% will reduce current mortgage insurance premiums from 1.35% to 0.85% for borrowers to put down less than 5%, and from 1.30%  to 0.80% for borrowers who put down more than 5%.

2. Elimination of Post-Payment Interest Charges

Some conventional mortgage loans charge a prepayment penalty, which is a fee borrowers pay their lender for paying off the mortgage in full within the first two to three years. FHA home loans have something similar, called a post-payment interest charge.

Basically, if you pay off your mortgage early either by selling or refinancing, your mortgage lender might charge interest for the entire month, regardless of when you actually paid off the mortgage. For example, if you paid off a mortgage on September 3, your lender would charge interest through September 30. New rules, however, get rid of this extra cost. Post-payment interest charges are eliminated beginning January 21, 2015. Lenders can only charge interest up until the date a borrower pays off his loan.

3. Advance Notice for Rate Adjustments

Adjustable-rate mortgages typically start with a rate lowered than fixed-rate mortgages. Unlike a fixed-rate, which has a set rate for the life of the loan, an adjustable-rate mortgage has a temporary fixed rate —  one to five years — and then the rate adjusts annually depending on the market. Previously, FHA home loan lenders gave borrowers a 25-day notice of rate increases. Effective January 10, 2015, lenders must give borrowers with an FHA-insured adjustable-rate mortgage a 60- to 120-day notice of any changes to the monthly payment. This provides borrowers additional time to prepare for higher mortgage payments.

Buying a house is arguably one of the most expensive transactions you’ll ever make in your life. And unfortunately, lack of funds is a home buying hurdle for many people. However, with an FHA home loans, affording a property has become much easier.

source: totalmortgage.com

FHFA Policy Changes May Loosen Lending Requirements

Many prospective homeowners believe saving money for a down payment and filing out the requisite paperwork is all they need to become a homeowner. Unfortunately, some have learned that tough lending requirements stand in their way to achieve this dream.

But this could soon change thanks to new rules proposed by the Federal Housing Finance Agency (FHFA), the regulator who manages Fannie Mae and Freddie Mac. The FHFA is considering policy changes that aim to make credit more available to potential home buyers. This will encompass many of those who have been have been excluded from the housing market due to harsh lending requirements implemented after the housing crash.

For prospective owners ready to jump into the housing market, what will they find with the new rules?

Lower down-payment requirements
FHFA is currently reviewing guidelines that will decide whether Fannie Mae and Freddie Mac will cut down-payment requirements from the current five percent to three percent. According to Mel Watt, FHFA director, the two mortgage companies will, for some loans, guarantee down payments at three percent in an effort to help those homeowners who are underwater.

The regulator is expected to release its guidelines by the end of November. The changes are likely to open credit for those prospective homeowners who are first-time buyers, self-employed, borrowers who have recently switched jobs and those who have endured financial challenges in the recession, according to a press release.

Ease lending standards

Along with homeowners benefiting from the changes, the lenders may also be affected as the FHFA is considering potential changes that will have lenders bring down their standards.

But it isn’t well received so far.

This comes as Fannie Mae and Freddie had required the industry to buy back loans in billions of dollars after the housing crash. Lenders then placed tough demands of homeowners, asking for high credit scores and other high standards in an effort to protect themselves from possible financial penalties. Lenders have said they won’t relax them amid the potential easing. And w

Whether Fannie and Freddie can and will take action for this is unclear–something the FHFA will have to address.

Look for new doors to open for this group. Mark Zandi, chief economist at Moody’s Analytics, said of the possible new rules, “Creditworthy borrowers who have been locked out of the housing market will finally have an opportunity to become homeowners.”



Make a careful decision

For lenders and homeowners, these proposed changes may create a challenging environment as people who couldn’t afford loans in the past will now come out and try to borrow.

How will this work out? Probably not well, as $51,900 is the median household income in the U.S. and the U.S. median home price sits $188,000. This could pose challenges for the average homeowner, placing themselves in a situation that could have them spending beyond their means. However, with the market still attracting cash buyers, there’s still competition for properties from buyers who will outspend regular people for them.

But don’t fear prospective homeowners, there will be opportunities as the FHFA will promote more lending, which will then result in credit to those who had been previously denied.

If you feel the potentially lower three percent may open refinance doors for you, don’t quickly jump. Be sure to review your financial picture before placing yourself in a situation that could possibly put you underwater.

source: totalmortgage.com

Realtors’ Chief Economist Says FHA Loans Are a Rip-Off for Consumers

Last week, Zillow hosted its fifth housing forum in the nation’s capital to discuss current real estate matters.

The panel of reporters, real estate gurus, and policymakers discussed a number of issues, ranging from why people move to mortgage rates and affordability.

But perhaps the most controversial comment came from Lawrence Yun, the outspoken chief economist of the National Association of Realtors.

When the WSJ’s Nick Timiraos questioned whether the mortgage credit box was too tight, Yun took the opportunity to express his discontent with the FHA and its new sky-high premiums.


Are FHA Loans a Bad Deal?

He prefaced his comment by saying he might upset the lobbyists in Washington, but went ahead and said, “essentially they are ripping off the consumers,” when speaking of the FHA and its pricey premiums and fees.

Yun noted that FHA loans have historically been aimed at first-time home buyers and moderate-income buyers, so charging premiums that he refers to as “outrageous” almost warrants action from the Consumer Financial Protection Bureau (CFPB).

Sure, he was chuckling when he made that last comment, but it’s clear he’s not happy with their new premium structure, and has made it one of his priorities to whittle them back down to more reasonable levels.

The FHA has raised the upfront and annual insurance premiums multiple times over the past several years, mainly because they had no other choice but to raise capital to stay in business.

Additionally, many FHA borrowers now pay annual premiums for the life of the loan, further increasing the costs of homeownership.

That has certainly pushed the FHA loan share down in recent months, with conventional loans snagging a larger share of mortgages these days.


So When Are FHA Loans the Better Option?

In a related report from the Urban Institute, a nonpartisan think tank in D.C., the thinkers determined when FHA loans made more sense than conventional loans, and vice versa.

They assumed a purchase price of $250,000 with a five percent down payment, along with a mortgage rate of 4.29% on a conforming loan and 4% on an FHA loan.

Even with FHA premiums as high as they are today, a borrower with a loan-to-value of 95% would be better off with an FHA loan when their FICO score is below 680, as seen in the chart above.

If their credit score is above 680, they’re better off going the conforming/private mortgage insurance route.

So in that sense, the FHA is still serving that underserved portion of the population, at least with regard to low credit score and lack of a down payment.

Yes, there are borrowers who lack the necessary funds for a large down payment, but have good credit scores, and these people are essentially stuck paying more.

But that’s pretty much the consequence of having standards that were too loose prior to the housing bust. I don’t really see the FHA budging anytime soon.

A recent survey from NAR also indicated that 5.7% of originations were lost because of the higher FHA fees.

For the record, people move mainly to buy a larger home or for a new job (according to Lawrence Yun, grain of salt), and a lot of the panelists seem to think interest rates will be closer to 5% next year.

They also discussed interest-rate lock-in, which again Yun dismissed for the reasons mentioned above. Still, other panelists fear fewer homeowners will be willing or able to list their homes as interest rates rise. But only time will tell.

source: thetruthaboutmortgage.com

5 Unexpected Expenses for First Time Homebuyers

As my husband and I prepare to buy our first home, we’re coming to terms with how much money we really need to save.

The prices in the Southern California house market are staggering enough, but there are always more hidden expenses that you need to think about than just the cost of the house.

If you’re thinking about buying a house, you definitely want to increase your savings substantially. Will you have enough for 20% down payment? If not, you may have to look into an FHA loan which has lower down payment requirements.

If you haven’t already done so, you may also want to think about lowering your debt as much as possible. Lowering your debt makes you look like a more stable client when a lender is thinking about lending you money.

The bottom line is: if you’re thinking about buying your first home, get prepared to shell out lots of cash. You need cash for your down payment, you need cash to pay down your debt, and you need cash for a lot more things too.

Here are five unexpected expenses for first time homebuyers.

Closing Costs: Most homebuyers are aware that closing costs exist, but these days, closing costs can easily run five figures. And some lenders won’t let you roll that into your loan, meaning you need to have the cash on hand.

Two months’ Rent: Other lenders require that even after you’ve paid your down payment and closing costs, that you still have two months’ rent in cash reserves immediately available. This is to ensure that you won’t be flat broke the minute you move into your house. Depending on the size of your mortgage, this can easily be a few thousand dollars, especially if you live n the southern California area or another high-real estate city.

Property Taxes: In California, property taxes amount to 1% of the home’s sale value annually. However, there are additional taxes that can tack on cost to your annual property taxes. If you live in an area where property taxes are variable, your taxes can easily go up , costing you more over the life of the loan.

Home Insurance: You just bought a  new house, you want to protect it don’t you? Well, that’s going to cost you. Some lenders will roll in the cost of property taxes and home insurance into the loan, but it may be a better bet to purchase home insurance separately. Make sure you get several opinions and read the fine print on what your home insurance will actually protect you against.

HOA/Mello Roos: If you live in a newer California community, you may be charged mello roos, which are an additional tax in certain neighborhoods to help build up public spaces, like parks, schools, and libraries. You may also live in a Homeowner’s association, which helps maintain public spaces within the neighborhood like pools, and grassy medians. Some HOA’s even cover the outside of the home, like roofs. HOAs and Mello roos can easily add on several hundred to your monthly mortgage payment.

If you’re thinking about buying a home, make sure to look into all the additional charges of what it will actually cost to buy a home.

source: everythingfinanceblog.com

Average U.S. 30-Year Mortgage Rate Slips to 4.22%

WASHINGTON -- Average U.S. rates on fixed mortgages fell for the third straight week to their lowest point in three months, as a decline in consumer confidence and the onset of the government shutdown forced rates down.

Mortgage buyer Freddie Mac said Thursday that the average rate on the 30-year loan dropped to 4.22 percent from 4.32 percent last week. The average on the 15-year fixed loan declined to 3.29 percent from 3.37 percent.

Both are the lowest averages since early July.

Rates began to fall last month after the Federal Reserve held off slowing its $85-billion-a-month in bond buys, which have kept rates low. They fell further this week as the shutdown prompted investors to sell stocks and buy Treasury bonds. Mortgage rates tend to follow the yield on the 10-year Treasury note.

The 10-year note traded at 2.63 percent Thursday morning, down from 2.71 percent on Sept. 23.

The Federal Housing Administration, which guarantees about 30 percent of U.S. home mortgages, says that if the partial shutdown continues for an extended period and the agency's funding runs out, it wouldn't be able to continue approving loans.




In that case, "We do expect that potential homeowners will be impacted, as well as home sellers and the entire housing market," the FHA said in a contingency plan.

Buyers wouldn't disappear. But some would linger in limbo until the government reopened and a backlog of applications cleared.

To calculate average mortgage rates, Freddie Mac surveys lenders across the country Monday through Wednesday each week. The average doesn't include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

* The average fee for a 30-year mortgage was steady at 0.7 point. The fee for a 15-year loan also was unchanged at 0.7 point.

* The average rate on a one-year adjustable-rate mortgage was unchanged at 2.63 percent and the fee held at 0.4 point.

* The average rate on a five-year adjustable mortgage dipped to 3.03 percent from 3.07 percent. The fee rose to 0.6 point from 0.5 point.

source: dailyfinance.com

Get a better mortgage deal with these six steps

For most would-be homebuyers, making a run at homeownership is going to mean getting approved for a home loan.

It's a process that, at best, can be stressful and confusing. Borrowers can be better prepared by taking steps to study their options and learn what to expect from a lender.

"It's surprising to me that people tend to spend more time in pre-purchase research for a car than they do for a home mortgage," says Chris George, president of home mortgage lender CMG Financial.




Keeping up to date on changes in the mortgage market is necessary, because the government, which essentially backs 90 percent of new home mortgages, keeps tweaking the guidelines for the loans it will guarantee.

In early April, for example, the Federal Housing Administration put into effect several new mortgage rules, including one that raises the cost of mortgage insurance for borrowers who take on FHA-backed loans, among other changes.

Here are six tips for improving the chances that the mortgage math will add up in your favor:

1. BUILD A STRONG CREDIT SCORE

One of the main factors that lenders look at to determine a borrower's creditworthiness is, aptly, their credit score.

Bad borrower behavior like late credit card or other loan payments, having a foreclosure or bankruptcy in one's credit report and carrying high balances will weigh down your credit score.

Most banks sell the home loans that they make to government-owned mortgage companies such as Fannie Mae and Freddie Mac. To do that, those lenders must adhere to certain lending criteria.

Loans backed by the Federal Housing Administration will accept FICO scores below 600, but expect to pay a significantly higher interest rate the lower your score. A stellar score ranges from 760 to 850 and can give you greater negotiating power over the terms of the mortgage and ultimately, the total cost of the loan.

One way to mitigate the impact of a low score: Make a higher down payment, George says.

If your credit is less-than-stellar shape, make sure you give yourself time to rack up good credit history well before you attempt to apply for a home loan. This starts by checking your credit.

Consumers are entitled to a free credit report every 12 months from each of the credit bureaus: Experian, TransUnion and Equifax. You can get copies at www.annualcreditreport.com .

2. KNOW YOUR LOAN OPTIONS

Apart from increasing the chances of qualifying for a loan, making a down payment of at least 20 percent of the sales price or appraised value of the home will spare you from having to pay private mortgage insurance.

If you can't afford that, you might qualify for financing on an FHA-backed loan. Those loans allow borrowers to make a down payment of as little as 3.5 percent of the purchase price. That's great if you're a first-time buyer and haven't saved up for a bigger down payment. But to protect itself from potential loan defaults, the FHA requires lenders to charge extra fees to cover monthly mortgage insurance payments.

Until this week, the FHA had dropped the mortgage insurance requirement for homeowners with 30-year loans who made payments for five years and managed to bring their loan-to-value ratio to 78 percent. Now, borrowers with a loan-to-value ratio between 78 and 90 percent will be able to stop making mortgage insurance payments after 11 years. But those borrowers who still have a loan-to-value ratio greater than 90 percent will be required to pay mortgage insurance for the life of the loan.

"No matter how much of your loan you pay down, you'll always have to pay that insurance premium, and that's pretty significant change," says Rick Sharga, senior vice president at mortgage lender and servicer Carrington Mortgage Holdings.

Another change that went into effect: The FHA is requiring that borrowers put down at least 5 percent on home loans of $625,000 or more. That's up from 3.5 percent, but actually less than the 10 percent down that most lenders require.

3. CONSIDER MAKING A LARGER DOWN PAYMENT

Given the prospect of not being able to get out of paying private mortgage insurance, some experts say borrowers who can afford to put down more than 3.5 percent on a home should consider getting a loan that's not backed by the FHA, sometimes known as a conforming loan.

Such a loan typically only requires that the borrower make a 5 percent down payment. Although that means you still would have to pay private mortgage insurance, at least you're not locked in, notes Jack Guttentag, Wharton School professor of finance emeritus and founder of www.mtgprofessor.com , which offers advice and online calculators for weighing different mortgage scenarios.

That mortgage insurance can be cancelled automatically when the loan-to-value hits 78 percent. "You're generally better off getting a conforming loan," Guttentag says.

4. KEEP AN EYE ON FEES

In addition to a down payment, you'll also have to set money aside for closing costs, which can run into the hundreds or sometimes thousands of dollars.

Lenders charge all manner of fees, some of which are negotiable, while others are not. They are required to itemize all fees required to close the deal, so review them carefully.

Your bank could charge you to cover items such as credit reports, appraisals, documentation and administrative costs. The total expense will vary depending on where you live and your particular situation.

Also, if you end up with mortgage insurance, that could cost $100 or more a month, depending on the type of loan.

5. WAIT FOR A GOOD DEAL

Rising home prices and warnings, usually trumpeted by lenders, that interest rates will soon rise can create a sense of urgency to purchase a home. But if your finances and credit score are not solid enough to enable you to qualify for a loan at an affordable rate, it's best to not rush into buying.

To boost your chances of getting a good deal on a home loan, Guttentag recommends having a credit score of 740 or better, making a down payment of 20 percent.

6. COMPARISON SHOP

It's prudent to get a feel for what different mortgage lenders will offer. After all, getting a home loan is not unlike getting financing for a car. There is some room for negotiation, says George.

He suggests borrowers approach lenders and state what kind of loan term and interest rate they want, and how much of a down payment they're willing to make. Borrowers also should ask what can be done to accomplish this with the least amount of points, or fees that can be charged based on a percent of the loan amount.

As leverage, it's best to have quotes from competing lenders, which can be obtained on several websites. They may be enough to sway the lender to match more favorable terms offered by the competition.

In addition to Guttentag's site, you can find mortgage calculators and pricing quotes at www.bankrate.com and www.zillow.com/mortgage-rates .

source: newsday.com