Three primary factors will affect not only your ability to obtain a mortgage loan, but how much it will cost you and at what interest rate.  These three variables are your credit score, how much money you will be able to put down toward the purchase of your home (or equity when refinancing) and the loan amount.  The appraised value of a home less the down payment (or amount of equity) divided by the mortgage loan balance is called the Loan-to-Value (LTV).

Additional fees are added to the cost of a loan based upon your credit score, the LTV and loan amount.  A credit score of 740 and a LTV of 80% for a loan amount greater than $100,000 would have no adjustments.  A combination of lower credit scores, higher LTVs and/or lower loan amounts will add additional costs to your loan.

Other factors affecting these loan adjustments are certain cash-out refinance transactions, loans secured by two-unit properties, loans with subordinate financing, loans with interest-only features and loans secured by condominiums and cooperative properties

Please call me to determine how these loan level pricing adjustments will affect your ability to secure a loan and at what interest rate and cost.