If you made a monthly mortgage payment amount for your application, why would it change much?

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I recently had a loan application for a loan, and my aunt, who are in the mortgage business, “said my mother, I do not think the monthly amount she quoted me (taxes and insurance). She said it would probably change. Why would it change?

  1. Reply
    April 29, 2011 at 9:16 pm

    1/ Rate change….the spread is always subject to the rate of the index at the time of closing….

  2. Reply
    Jon H
    April 29, 2011 at 9:41 pm

    usually the payment is based on an interest amount. If you have rates change then the payments will change, but if you have been pre-approved then you should have a rate guarantee of at least 90 days. I am a mortgage broker from Canada and that’s how it works here.

  3. Reply
    April 29, 2011 at 10:10 pm

    The interest rate you get is only “locked in” for a specified length of time. That might be one reason, if the rate increased between the time of the quote and now. Also, tax rates and insurance could be different based on previous homeowner’s rates.

  4. Reply
    April 29, 2011 at 10:28 pm

    If note is based on interest rate and it changes

  5. Reply
    April 29, 2011 at 11:26 pm

    Unfortunately, alot of mortgage brokers mislead potential customers in order to get them to commit to their loan and get rid of competition. Being in the business, often times we see this due to the highly competitive nature of the industry. Your aunt in the title business, may be wrong as well. She may not know if you have an interest only mortgage or a option-arm mortgage, many programs have lower than usually/traditional payment options. There are many factors that can contribute to your payment changing…..Taxes in 07 may increase, your homeowners insurance policy premium, interest rates may increase or decrease between now and when you purchase/refinance this home.

  6. Reply
    April 29, 2011 at 11:58 pm

    As you say quote, that is what it is. Always ask for an exact price and have it documented then it becomes a contract and it can not be changed. Unless it is a loan thru the bank then it is intrest although they should be close on the quote.

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