Rates are flat today. Today’s comparison mortgage rates with no lender fees are 4.5% on a 30 year, 3.625% on a 15 year and 3% on a 5/1 ARM. (click here for details).

I have a dream that all responsible home owners could refinance their current mortgage at a lower rate, with lower costs. I have a dream that buying a home will be simple, instead of a hassle. Check out one kid’s dream…guaranteed to make you laugh.

I also discuss loan to value ratios (LTV) affecting one viewer’s quoted mortgage interest rate.

It’s all in today’s episode:

(Watch it on your mobile phone or email reader here)

Today’s question is from Leo in California.

He writes:

“Mike, my appraisal came in a few thousand short of what I thought it would and changed my Loan to value from 74% LTV to 76% LTV. My originator is telling me I have to take a higher rate. Is this true?”

Leo – Yes generally it does. Here is what happens:

Your initial rate is based off a certain Loan to Value Ratio (LTV) and if it is lower than 75% LTV you get a better rate than an 80% LTV because rates are based on risk concerns like equity. The less risk, the better the rate. This holds true for credit as well. If you have a low LTV and a low credit score you will get a worse rate than someone with a low LTV and higher credit score.

My recommendation is to be realistic about the value of your home and your credit when shopping around. It will come out eventually anyway.

Thanks for your question Leo. If you want to make sure your rate quote is accurate send me your loan scenario and I will double check it.

Also, if you get a chance, I would love it if you could help me in my dream to bring transparency to mortgage lending by sharing today’s episode on Facebook or Twitter. Let’s change the way people shop for a mortgage…forever!

See you tomorrow!

– Mike

PS. To ask a question, get advice, or find out what your lender is making off your loan, just post a comment below. Daily comparison rates, calculators, and other cool features are available in the free Rates in Motion LoanApp by going to your smart phone and clicking on this link, activation code is 9203780002

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