First of all, it just isn’t realistic to think that there is ONE lender who always has “the best”
rates or programs.
Loans fall apart all the time for reasons other than the rate; people don’t qualify, even though they think that they do.
Getting the loan done is what counts and knowing how to get it done when something goes wrong is what counts.
You can shop for quotes on the internet and have your lead sold 50 times and get 50 emails/phonecalls from mtg people all promising you the lowest rate. The most foolish way to “shop” for a mortgage, yet the way many people do.
The premium that you will pay for an interest only 30 YR fixed is expensive money. It’s about a .50 difference in rate. The I/O option is only for 10 years. In years 11-30 your payment jumps as it becomes amortized over 20 years.
On a $400,000 loan your payment difference is about $300. By paying $300 more, you will lower your principal balance by at least $450 a month, in excess of a 50% return guaranteed. Nobody is going to be able to beat that return consistently.
With a 10YR ARM you have a choice of I/O or fully amortized. The I/O option is expensive money.
With 10% down you are going to pay mortgage insurance, which is also expensive money.
If you would like to discuss what your options are, I’ll be happy to help.My contact info was posted above. HLS Sheldon
