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Whether you are a first-time home buyer or are looking to buy your next home, you are more than likely going to hear a lot of talk about interest rates and how they can affect your mortgage payment. In order to bring some clarification to the subject, Russ Schreier, Vice President of Sales at Samuel Scott Financial Group, explains interest rates and what factors can influence them in terms of a home loan.
Simply put, an interest rate is the cost of borrowing. How much does it cost you when you borrow a dollar in interest over the term of the loan? There are a variety of different factors that influence interest rates, on both a micro and a macro level. On a macro level, meaning globally or nationally, what is the economy doing? Is there inflation? How is the unemployment rate? What does the growth look like? If the economy is in a bad state, interest rates typically tend to be lower, as the overall health of the economy affects interest rates by influencing the supply and demand of credit.
On a micro or personal level, there are factors such as your credit score, how much money you want to put down, what type of loan you want and what kind of repayment term you would like. Whether you choose a 30 or 15 year loan will influence what the interest rate will be and impact how much you pay over the life of the loan.
Another thing to consider is that you can buy down your interest rate by paying points . One point is equal to 1% of the loan amount, and is considered pre-paid interest. If one pays one point upfront on a loan in closing, it may lower the interest rate a quarter or 3/8 of a percent, which over the life of a loan adds up. A Mortgage Advisor will help run a break-even analysis that will see how many months you need to keep that loan in order to start saving money.
When talking to a Mortgage Advisor, it is important to talk to them about how long you plan on keeping your home, as well as a variety of other factors that may influence your interest rate. For some borrowers it may be better to wait to pay off debt, while others will choose to pay points down. Regardless of what type of loan you are researching, it is always helpful to talk to a Mortgage Advisorl to get the best advice and a loan that is tailored to your needs.
Russ is a highly regarded professional with more than twenty-two years experience in the residential lending industry, including thirteen years in executive management. As the Vice President of Sales at Samuel Scott, he oversees the development of their expert team of loan originators.
Russ, who has been featured on NBC Nightly News, CNN, Mortgage Banking Magazine, Robb Report and various other publications, has a long history and extensive contacts through out the Western United States.
One of his greatest strength is the creation and management of joint ventures with real estate brokerages . Russ has been able to form strategic relationships that increase the productivity of both the agents and originators. Service oriented and performance driven, he offers his sales team tremendous support and guidance.
Samuel Scott Financial Group is a boutique mortgage company recognized for superior customer satisfaction and the way they tailor the residential loan process to every individual client. Todd “Samuel” Pianin and Brian “Scott” Reynolds founded the company on the principles of long lasting relationships, and a sincere honest approach to every single individual we serve. Consistent and reliable, Samuel Scott Financial Group has been selected as The Best Mortgage Company in San Diego for the 5th straight year by readers of local publications.
Vice President of Sales: Russ Schreier
Mortgage Advisors: Christian Alvarez, Dean Brown, Mark Buchanan, Mitch Palmer, Brian Reynolds, Debra Roberts, Mark Robertson, Alex Scoma, Brian Shaw, Keith Sims, David Talbott.
Samuel Scott Financial Group is licensed by the CA Dept. of Real Estate license #01458652 and NMLS identifier 235584. ©2011 Samuel Scott Financial Group. All rights reserved.