If you've been a Mortgage Porter subscriber or have seen my posts at Rain City Guide, you know how I feel about chosing your mortgage by who's quoting the lowest rate. However, if you feel you must…here are a few quick questions to ask the loan originator to make sure they qualify to care for your largest debt which is tied to your biggest asset.
What are mortgage rates based on?
What is the next economic report or event that can trigger interest rate movement?
When the Fed changes rates, how does this impact mortgage rates?
Should rates improve after we lock, what are my options?
Will you gurantee your closing cost shown on your good faith estimate?
Nothing is more expensive than chasing rates and winding up with the wrong mortgage. The best plan is to have the correct mortgage from the start so you can hopefully avoid refinancing (unless rates dip low enough to justify based on your financial plan).