There are many considerations when you purchase or refinance your home. The current property value, immediate equity in the form of a down payment, or equity gained from years of owning your home, current credit standing, mortgage rates, and the cost associated with purchase or refinancing your home. In some instances, consumers may have mortgage loan lenders and brokers compete for their mortgage loan business. As you have a greater variety of mortgage loan rates and terms to choose from.

Mortgage rates especially affect your ability to qualify for a certain mortgage amount. Using a mortgage calculator. As an example, for a loan of $200,000.00 at 5.5%  for 30 years, the monthly payment would be  $1,135.58 in principle per month. Using a mortgage calculator at 6.5% the amount per month would be $1,264.14 = a difference of $128.56 per month more in principle payment. A mortgage calculator can be very helpful to find out what loan amount you qualify for, and mortgage rates ant terms comparison. Mortgage rates are just one of the components in loan qualification and evaluation.

Generally, a purchase home loan is normally completed within 30 days. To refinance a loan may take up to 45 days or more, depending on the volume of business at the lender or broker at the time of your application. The key to expedite your mortgage  purchase or refinance loan, is to have all the paperwork in on time.

Each mortgage lender or broker has their own set of rules and requirements above and beyond Government Regulations. Some mortgage lenders or brokers will require more documentation and verification than others. If your paperwork is incomplete, or you wait for several days to send in the requested documents. You may find yourself extending past your interest rate lock period. Usually, this means one of several things are about to happen.

1. The lender may extend your interest rate lock period without an increase in points or interest rate.

2. The lender extends your interest rate lock period, BUT, you will need to pay a modest increase in points or interest rate.

3. Worst Case Pricing. Your interest rate goes to the current rate available. In addition to any points you are currently paying.

It is strongly recommended that you provide all requested documentation immediately. No one wants to increase the cost of doing business. It creates problematic situations for everyone involved. Not to mention the emotional upheavals. Stay in touch with your lender or broker to monitor current and projected progress, scheduling, and situations.