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Interest Rates

HOW CAN I GET AN INTEREST RATE QUOTE?
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Rates quoted on the internet seldom, if ever, are accurate for the simple reason they can fluctuate throughout the day. We believe rates obtained by the internet most often confuse and mislead customers. 

Please be advised rates can vary depending upon so many different factors such as the selected program, down payment, primary residence versus a second home and/or investor property, credit scores, etc.
 
Orlando Financial Center encourages our customers to contact us directly at 407-839-6060 or via email at mortgage@orlandofinancial.com to discuss your specific needs so we may provide you with your most favorable option. This way, we can provide you with current rates specific to your option of choice and your qualifications.

Below are several FAQ regarding APR vs. Interest Rates

 

1. What is the difference between APR and interest rate?
 
The APR (annual percentage rate) reflects the cost of your mortgage loan as a yearly rate. It also incorporates the cost to obtain the loan, such as discount fees and loan origination fee. The interest rate is the actual note rate.
 
2. Why is the Annual Percentage Rate (APR) higher than the rate shown on my mortgage note?
 
The rate reflected on the APR shows the cost of the credit as a yearly rate. This rate is generally higher than the rate stated on your mortgage note because, in addition to the interest rate, APR includes other costs such as origination fee, loan discount points, pre-paid interest, and mortgage insurance. The APR allows you to compare, in addition to the interest rate, the total cost of financing your loan, among various lenders.
 
3. What are mortgage origination fee/charges?
 
An origination fee is what the lender charges the borrower for making the mortgage loan. Origination services include taking and processing your loan application, underwriting and funding the loan, and other administrative services. Origination fees are listed in section A of page 2 of your Loan Estimate. Origination fees generally cannot increase at closing, except under certain circumstances. The final charges are listed in section A of page 2 of your Closing Disclosure.
 
 
4. What is a discount point?
 
A discount point is paid to the lender to permanently buy down or lower an interest rate. It is usually a percentage of the loan amount.
 
5. May I pay additional discount points to reduce my interest rate?
 
Yes, most lenders will allow you to pay additional discount points to lower your interest rate.
 
 
6. How are rates determined?
 
Rates can change daily or even more than once within the same day. The changes are based on many different economic indicators in the financial markets. To obtain current interest rates, contact your mortgage lender.
 
 
8. What is prepaid interest?
 
This is the interim interest that accrues on the mortgage loan from the date of the loan closing to the beginning of the period covered by the first monthly payment. For example, if your closing date is scheduled for June 15, the first mortgage payment is due August 1. The lender will calculate a per-day interest amount that is collected at the time of closing. This amount covers the interest accrued from June 15 to July 1. Some lenders prohibit the collection of pre-paid interest.
 
9. What is the difference between 'locking' and 'floating'?
 
A lock gives you a specified period of time - usually 60 days - of protection from financial market fluctuations in interest rates by setting the range of pricing available to you.

Your final rate, which may not be determined until closing, will reflect the pricing that was available at the time you locked for loans with your specific transaction characteristics and your credit profile. While locking does not guarantee that a specific rate will apply, it does ensure that your loan pricing will be unaffected during the lock-in period by changes in financial market conditions.
If you choose to "float" or defer "locking," your rate will fluctuate with the market and will be subject to both upward and downward movements in the market. The benefit to floating is if interest rates were to decrease, you would have the option of locking in at a lower level of rates.
 
 
10. When can I lock and how much does it cost?
 
Most lenders will allow you to lock once you have found a property and as late as up to seven business days before closing.  
 

 

ORLANDO FINANCIAL CENTER, INC. NMLS#:229868
605 E ROBINSON ST STE 700, ORLANDO, FL  32801
Office:  (407) 839-6060
mortgage@orlandofinancial.com
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