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Research Denton TX mortgage rates and get a better deal on your next home loan. Denton Texas mortgage lenders offer a variety of financing products and payments depending on your needs. If you are looking to purchase a home and you are curious about Denton TX mortgage interest rates, it pays to be an informed consumer. You can get competitive rates and terms on Denton Texas home loans whether you are shopping for conventional financing, VA loans, FHA loans, jumbo loans or just about any mortgage product you can find.
You can also gain insight on mortgage rates by consulting with a real estate professional who also has mortgage origination experience. I happen to fall into that category. You can get updated mortgage interest averages from a variety of sources. See here, here and here. Mortgage News Daily shows you what the prevailing rates are on any given day with commentary on what is driving the market.
One of the first things you will notice about the rate averages quoted from various sites is that they are all different! If you are wondering how that could be, welcome to the wonderful world of finance. MND is a good guide for typical retail rates. The Freddie Mac rate index tends to be closer to par or industry wholesale rates in a best-case scenario. Freddie’s survey results are from the previous week’s data so it’s not always a reflection of current rates in a quickly changing market.
Various sites quote benchmark averages for interest rates for popular products like the 30-year and 15-year fixed rate mortgages, as well as FHA 30-Year loans, jumbos and probably a 5/1 ARM or 7/1 ARM. An ARM is of course an adjustable rate mortgage. There are also different rates for refinance loans whether you are talking about a straight refinance or a cash-out refi. Need a home equity line of credit (HELOC)? There are rates for that too!
If you have solid credit and income, expect to receive the best rates provided by your lender. If you don’t have what’s termed “A paper” credit, your rate could be higher than normal. Your loan-to-value (LTV) ratio also plays a factor in the rate you will receive on your Denton TX mortgage loan. If you want the best rate, be prepared to put down more money to reduce the LTV.
In terms of the APR vs the quoted rate, remember that the annual percentage rate (APR) for your Denton TX mortgage incorporates those other fees and expenses associated with procuring the loan along with the nominal interest rate. This is why the APR is generally a bit higher than the nominal rate. If the APR is significantly higher, that means there are some hefty fees built into the loan.
If you have never seen a yield spread matrix, you are not alone. This is the table showing various premiums or discounts associated with a particular interest rate for a particular loan product on any given day. These premiums (and thus rates) can change daily and sometimes several times during a day. Mortgage interest rates usually key off the benchmark 10-Year Treasury yield. As the yield on treasuries rises, mortgage rates generally rise as well.
Depending on the lender, they may share this yield spread matrix with you or not. Many don’t because they don’t want you to know how much they are making off of the loan. This yield spread premium is profit for the retail lender, providing the difference between the wholesale rate and the retail rate. Some lenders will also charge “origination” fees on top of those yield spreads they are also pocketing. In Layman’s terms this is called double dipping. Be sure to ask about the yield spread associated with your rate quote. If your lender won’t share it, you should ask why?
Aside from your typical mortgage units within large banks, there are a number of other Denton TX mortgage providers. These could be private label regional or national mortgage companies or your local credit union for instance. Credit unions can be a great source of mortgage financing, and many credit unions also hold their own loans. This means they don’t assign the mortgage servicing rights off to other companies.
Getting a Denton Texas home loan doesn’t have to be difficult. Evaluate your options for you next Denton Texas home loan by finding a reputable mortgage lender with great rates and professional service. Aaron Layman Properties can help you evaluate good faith estimates and loan terms so you find the right loan for your next Denton Texas real estate transaction.
In the images/charts on this page, you get an idea of how mortgage interest rates affect real estate. Even here in the DFW area buyers are sensitive to movements in interest rates. That’s because people buy payments, not just prices. With area home prices at or near record levels, interest rate increases become increasingly challenging for prospective home buyers. If you weren’t around for the housing crash of 2008, this is something to keep in mind. The Federal Reserve plays a significant role in the determination of mortgage interest rates, and thus home prices. This is just as true in Denton TX as it is in any part of the country.