Finding the best home mortgage interest rates begins with determining
which type of loan best fits your situation. Start with basics such as
loan program types and terms, and then move to specifics such as lenders
and mortgage details. You will see just by the advertised interest
rates on many bank websites that mortgage rates will often vary
depending on the loan product.
Loan Programs and Mortgage Rates
There is a strong connection between the type of loan you wish to
pursue and the amount of interest rate you will pay on your mortgage.
For example, the initial fixed rate on an adjustable rate mortgage (ARM)
might be as low as 2.5%, but those terms are only good for that initial
time period. Depending upon the type of ARM you get, you might have
those interest rates for anywhere from 1-5 years. After that initial
period expires, you will be required to pay the mortgage rate at that
current time. This is a risk that you take when you apply for an ARM,
but it can save you money on interest if you know that you will be
ending your loan agreement (i.e. moving or selling) before that initial
time period has ended.
On the other hand, if you seek a conventional 30-year fixed mortgage,
your interest rates will generally always be higher than those of ARMs,
but you will know exactly the amount you will be paying each month and
do not have to worry about your payments later fluctuating. This program
can be good for your situation if it is unknown, or likely that you
will be remaining in that home for more than 5 years. If you have a
large income cushion each month you might opt for a 15-year mortgage,
meaning that you get a lower interest rate, but will pay slightly higher
monthly payments because the funds are amortized over a 15-year period.
Make sure that you research each option carefully and how it can
benefit or put at risk your financial and living arrangement futures. It
does not hurt to speak with a few professionals about your financial
situation if you are unsure of which option might be best for you.
Finding the Best Mortgage Rate
Once you have decided which loan program you want to pursue, it is
time to take steps to find the best one possible that will provide you
with the lowest interest rate and least restrictions or additions
(private mortgage insurance (PMI), penalties on early payments, points,
processing charges, and more).
• Ask several lenders for the best interest rate they can give you on
the program you have determined is best for you. Make sure that they
include all extra fees (processing or origination fees) in their quotes
so there are no hidden surprises. Remember we list current mortgage
rates here daily on our blog from several of America’s top servicers.
• Find out about terms for locking in interest rates. Some lenders
will raise your interest rates in conjunction with asking for a longer
period of time with which to lock-in that rate. Other lenders will use a
float-down approach that lets you re-lock your rates if the overall
interest rates decline during your lock-in period. Just make sure that
whatever lock-in length you agree to that it will work with your closing
date (try to give yourself a few days of breathing room).
Finding the best home mortgage rates begins with choosing a type of
home loan. From there it is time to move on to loan details, and find a
lender who will give you clear information on the mortgage up-front.
Then it can be time to lock-in those rates and move forward with your
dream home purchase.
By
Friday, January 11, 2013
Best Home Mortgage Rates
The best home mortgage rates are not reflected by simply
identifying the lowest rate. In considering the best home mortgage
package for them, borrowers should understand that they are unique, and
that your home loan requirements may differ sharply from those of
another borrower.
KNOW WHAT TYPE OF LOAN FITS YOUR FINANCIAL NEEDS
A good start is to make a list of your requirements. Your first priority might be a low deposit loan. Entrepreneurs are usually self-employed, so for them a low doc mortgage may be number one on their list.
A borrower may require a construction loan and research might show that a line of credit feature in a loan will work best for them. Your best mortgage may be a fixed rate loan or a variable rate loan. Some people may want interest only payments for a fixed period. Others may want only a principle plus interest mortgage.
Which is right for you?
SHOPPING SOLO FOR LOANS REQUIRES TIME AND ATTENTION
It is popular to start searching for a mortgage loan online - be sure to pay attention to some of the less recognizable names offering mortgages online. You can discover dozens of loans offered with a rate under 7%.
You can conduct research online and offline, learn the vocabulary and sort out the information about each loan. This will require diligence since rates are tied to financial instruments, affected by government agencies and government policies - all of these respond, in varying degrees, to global pressures.
FREE PROFESSIONAL HELP IS A POPULAR ROUTE TO A MORTGAGE
You are well advised to take advantage of free assistance from mortgage broker professionals. Their services will include an inventory your loan needs, a comparison of hundreds of home loan choices and an explanation of all details. Some will even come to your home to explain the best home mortgage rates.
A personal visit with an industry authority is highly recommended. This person can answer all of your questions, address your concerns, and help guide you to a responsible decision. They will help you to sort out loan features, help you understand your borrowing constraints, and give you a clear picture of the financial details.
ASK ABOUT SPECIAL NICHE LOAN BOOSTS
It is important to talk about government sponsored help that may be available to some buyers. Remember that some cities offer extra incentives to buyers and you may also meet the criteria for a special class of buyer that is qualified to apply for other incentives.
Borrowers and loans are different. Mortgage professionals will help you sort out the loan offers and explain each one thoroughly. The process should result in the best home mortgage rates for each borrower based on the best fit and value for each one.
KNOW WHAT TYPE OF LOAN FITS YOUR FINANCIAL NEEDS
A good start is to make a list of your requirements. Your first priority might be a low deposit loan. Entrepreneurs are usually self-employed, so for them a low doc mortgage may be number one on their list.
A borrower may require a construction loan and research might show that a line of credit feature in a loan will work best for them. Your best mortgage may be a fixed rate loan or a variable rate loan. Some people may want interest only payments for a fixed period. Others may want only a principle plus interest mortgage.
Which is right for you?
SHOPPING SOLO FOR LOANS REQUIRES TIME AND ATTENTION
It is popular to start searching for a mortgage loan online - be sure to pay attention to some of the less recognizable names offering mortgages online. You can discover dozens of loans offered with a rate under 7%.
You can conduct research online and offline, learn the vocabulary and sort out the information about each loan. This will require diligence since rates are tied to financial instruments, affected by government agencies and government policies - all of these respond, in varying degrees, to global pressures.
FREE PROFESSIONAL HELP IS A POPULAR ROUTE TO A MORTGAGE
You are well advised to take advantage of free assistance from mortgage broker professionals. Their services will include an inventory your loan needs, a comparison of hundreds of home loan choices and an explanation of all details. Some will even come to your home to explain the best home mortgage rates.
A personal visit with an industry authority is highly recommended. This person can answer all of your questions, address your concerns, and help guide you to a responsible decision. They will help you to sort out loan features, help you understand your borrowing constraints, and give you a clear picture of the financial details.
ASK ABOUT SPECIAL NICHE LOAN BOOSTS
It is important to talk about government sponsored help that may be available to some buyers. Remember that some cities offer extra incentives to buyers and you may also meet the criteria for a special class of buyer that is qualified to apply for other incentives.
Borrowers and loans are different. Mortgage professionals will help you sort out the loan offers and explain each one thoroughly. The process should result in the best home mortgage rates for each borrower based on the best fit and value for each one.
You can find more information about the advantages of using a
mortgage broker. Miriam Bronkhorst specializes in finding the right
mortgage for your needs. Visit her at http://www.lendingplus.com.au
Article Source:
http://EzineArticles.com/?expert=Miriam_Bronkhorst
By Miriam Bronkhorst
Subscribe to:
Posts (Atom)