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Step 1: The Factors that Affect Your Mortgage Price Today


Your Price Adjustments on a 30-Year Fixed-Rate Mortgage
Factors Affecting Mortgage Price
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Property State: The state where the property is located.
Property County: The county where the property is located.
Loan Amount: This is the amount you borrow and are obliged to repay. It includes any settlement costs that you elect to finance rather than pay in cash at closing.
Loan Amount: This is the amount you borrow and are obliged to repay. It is the balance on your existing loan as of your last monthly statement, plus interest on that loan from the last statement date to the payoff date, plus the balance of a second mortgage if you have one and intend to pay it off with the proceeds of the new loan. The loan amount also includes any settlement costs that you elect to finance rather than pay in cash at closing.
Loan Amount: This is the amount you borrow and are obliged to repay. It is the balance on your existing loan as of your last monthly statement, plus interest on that loan from the last statement date to the payoff date, plus the balance of a second mortgage if you have one and intend to pay it off with the proceeds of the new loan. The loan amount also includes the cash you intend to withdraw and any settlement costs that you elect to finance rather than pay in cash at closing, and any cash that you take out of the transaction.
Property Value: How much the subject property is worth.
Down Payment: Presumes no secondary financing
Purhchase Price: The lesser of purchase price of the property and the property value.
Loan Purpose: A refinance is a cashout if a) you draw cash from the transaction in an amount exceeding the settlement costs plus the lesser of $2,000 or 2% of the new loan amount; or b) there is a second mortgage that was not used to purchase the property, that will be repaid with proceeds from the new mortgage; or c) the existing first mortgage to be repaid with proceeds from the new mortgage was taken out less than 12 months ago and was a cashout refinance.
Occupancy Type: Your primary residence is where you live most of the time, and where you are registered to vote. A second home is one that is not your primary residence. An investment property is one that is used to generate rental income.
Property Type: The type of housing on the subject property.
Property Zip Code: The zip code where the property is located.
FICO Score: A measure of your creditworthiness on the FICO scale, which ranges from 350 to 850.
Rate of Interest on Savings: This is the interest rate you could earn on the money you pay on the mortgage.
Income Tax Bracket: If you don’t itemize expenses, set the rate to zero. If you itemize expenses, which would include mortgage interest and points, this is the rate you pay on Federal, state and local income taxes on the last dollar of income you earn. We use this to calculate the tax benefit of the mortgage as a deduction from the cost.
Expected Years in Your House: This is how long you expect to retain ownership of your house. We use this as the period over which we calculate the total cost of your mortgage.
VA Eligible: This requires that you obtain a VA certificate of eligibility.
Lock Period: The period for which the lender's price commitment holds.
Waive Escrow: Your price may be 0.500 points higher when you waive escrow. The option to waive escrows is not available for FHA loans or conforming loans with Loan-To-Value greater than 80%.
Market Adjustment: The adjustment required for individual lender pricing deviations and changes to the market over time.
Adjustment Factor: While adjustment factors may affect the rate or fees, fee adjustments have been converted into rate equivalents to facilitate comparisons.
Unadjusted Price: What your price would be without upward price adjustmenets based on the features of your transaction that affect risk. Because actual rate quotes are in incrments of .125%, the figure shown will differ slightly from the price based on the lowest-risk transaction features.