The best mortgage for you depends on a lot of different factors.

Here is a quick list of different factors and loans that you may want to consider…

Conforming standard loans are for amounts up to $417,000 and eligible for purchase by Fannie Mae and Freddie Mac.

Conforming jumbo loans are for amounts up to $729,750, the maximums varying by county, and eligible for purchase by Fannie Mae and Freddie Mac.

Non-conforming jumbo loans are for amounts that exceed the conforming jumbo county limits, which range up to $729,750.

FHA standard loans are for amounts up to $217,050 and eligible for insurance by FHA.

FHA jumbo loans are for amounts up to $729,750, the maximums varying by county, and eligible for insurance by FHA.

Now, things may have changed quite a bit…

it was not long ago that you could get a 100% ltv loan, or get a loan with bad credit.. meaning even no credit.

you could also get a liars loan… this was really called a no doc loan. Meaning you got the loan based on not having to fill out any financial documentation.

All you essectially had to have was a pulse.

Now, times have changed, and things aren’t like that anymore….

One thing to note, interest rates are looking pretty good.

As of this writing, you can get a 30 year fixed rate loan for 4.5% That is really amazing…

Rates have never been this low.

Talk to your mortgage broker or loan officer to find out what other options may be ther for loans and what you can qualify for.

You may or may not have bad credit, but you may also be asking yourself whether or not it makes sense to refinance… Because you may be in a position to actually do so.

Well, let’s think about it…..

You need to find out if you can save more money and lower your monthly payments by doing so… One thing that is really important to know or at least note is, that you must make sure that you are factoring the additional costs of a refinance…

Those additional costs include things like loan origination fees, and points you may need to pay to get a better interest rate.

This could be a tough call if you have a fixed rate only slightly higher than current rates or an ARM that adjusted downward in the past year. Just make sure that you’ll be able to recoup the cost of refinancing before you sell your home. Divide the amount of the estimated closing costs (usually 3% to 6% of the mortgage amount; look at your loan papers from last time) by the amount of the monthly savings you anticipate. That will tell you the number of months until you break even.

A second mortgage or a home-equity line of credit complicates things. If you simply want to refinance the first mortgage, your total housing debt shouldn’t exceed 80% of your home’s market value, or else the holders of the second lien may refuse to resubordinate (agree to stand behind the first-mortgage holder for repayment if you default).

If the holder of the second lien refuses to play ball, you could try consolidating all your housing debt into a single mortgage — so that you can use some of the loan proceeds to pay off your second lien. To get such a conforming cash-out refi, you must have at least 20% equity, and for a conforming jumbo, you need 25% to 30% equity, or 35% to 40% equity if the loan is more than $625,500. You’ll also pay a higher interest rate, and paying the higher rate may not make sense. Another strategy is to take out a new home-equity line of credit from the lender of the new first mortgage and use it to pay off the old line of credit. Consider a line of credit with an option to lock in the rate.

There are lots of other things to think about… One of the best things you can do is take the time to talk with a qualified mortgage broker or loan officer.

One thing to note, a loan officer and a mortgage broker are two different people. Mortgage brokers make additional money on selling the loan products. A loan officer may not. Make sure you talk to the broker or officer and find out if they charge an origination fee, and if there are other costs added or associated with working with them, that are not directly related to the loan itself.

Where Can I Get the Lowest Rate?

Start by calling your current mortgage lender and your bank or credit union. you can also get on the internet and do some searches on the keywords getting low interest rates. Some mortgage brokers may be able to give you a wholesale rate that beats the rate from a bank’s loan officers. Known as correspondent lenders, they are typically large brokers that do the underwriting and immediately sell the loans they originate to wholesale lenders or investors — meaning they can both find you a loan and approve it. If you’re trying to consolidate loans, a mortgage broker may also offer more options than a retail loan officer. However, some lenders prohibit brokers from originating loans of more than $417,000.

If you have an existing relationship with a bank, then it may be a good idea to get with them and start the discussion about what you can do to get a better interest rate.

When you’re ready to get rate quotes, call your prospects in the late morning (eastern time), when lenders have issued the day’s rate sheets but before any changes are made to them. Each lender with whom you apply must give you a good-faith estimate, and you can use the GFE to compare lenders’ offerings. You don’t have to pay an application fee to get a GFE, but you might have to pay about $50 for the lender to pull your credit report. GFE= good faith estimate….

Don’t be afraid to talk with your lender… ask them about different programs, and ask them about what kinds of things you can do to get better payments.

You never know what is out there, and you never know what you can get until you ask…

so start asking….

Remember, you can save hundreds of dollars by getting lower interest rates, and you may quailfy for things you didn’t know you qualified for….

Rates are still low, but you’ll have to jump through a few hoops to qualify.

Is This a Good Time to Get a Mortgage?

Absolutely. In early June, the national average interest rate for a 30-year, fixed-rate conforming loan (under $417,000) was 4.9%, according to HSH Associates, a mortgage-tracking firm. The initial rate for a 5/1 adjustable-rate mortgage (featuring a fixed rate for five years, followed by annual adjustments) was 4.2%. “These are the best rates we’ll see for a decade,” says Guy Cecala, publisher of the newsletter Inside Mortgage Finance. “Don’t count on them getting better.” Business is slow right now, so lenders may even bid for your business if you have good credit.

The thing is, you do need to know what your credit is…. for those with bad credit, it is still hard, and possibliy harder than ever to get a loan now.

That has alot to do with the mortgage crisis and the mortgage meltdown…

But, hey, who’s counting?

Lending standards remain tight, and lenders have been picky even with the best-qualified borrowers. If you’re buying or refinancing the mortgage on your primary home, you’ll need a minimum down payment of 5% to 10% for a conforming loan or 10% to 15% for a conforming jumbo loan. With 20% or more down, you avoid private mortgage insurance, which typically costs 0.5% to 1.5% of your loan amount per year. Fannie Mae and Freddie Mac, which set the standards for mortgages they buy from lenders, require a minimum credit score of 620; you’ll get the best rate if your score exceeds 720. The Federal Housing Administration requires a minimum credit score of 580 to qualify with a down payment of 3.5%, but FHA lenders often impose a higher minimum score of 670. (If you apply with a spouse, lenders will probably base your rate on the lower of your scores.)

If you don’t really need a loan right now, maybe better to paydown debt and improve your debt to equity ratio.

And, if you have bad credit, then may be better to just focus on getting a much better credit score…

did you know that by improving your credit score by a few hundred points can mean the difference between saving hundreds of dollars in interest payments? Think about that….