It is Friday again! So here we are - lots of great activity out there. Good questions this week.
- We want to lock our rate, but how do we know which rate is the best option for us? I will always quote what we term as a par rate - with no origination, no discount. This means there is no fee paid at closing to buy the rate. I will also quote different rates with different costs. I will provide the comparison for cost vs. payment savings. We then calculate your break even point, so you can see when you would begin enjoying the savings.
- I have a judgment on my credit report. It is old, I will pay it. How do we best handle this? Taking something old that is derogatory and making it new again does affect credit score. We should first pull your credit report to see where we are with score. Provided we are good to move forward, I would strongly suggest that you not pay the judgment now - but instead pay it at closing.
- I am intere4sted in an interest only program. People keep telling me they do not exist anymore. Do you have one? As a matter of fact, we do! It is a 5/1 interest only ARM. The program can be used for primary and second homes.