Loans (MP) You found us because you’re looking for the best mortgage rates available in the U.S. You can’t be any luckier because mortgage rates haven’t move much in the past five years. They’ve been stuck at historically low levels. But the bad news is this can change any day. You probably want to get in on the ground floor now. But, you want an affordable home finance with a best mortgage rates that will keep your payments as low as possible. However, I would caution you to first…
Consider What Mortgage You Need
While 30-year mortgages are the most common, you have the option of considering home financing with shorter pay-back periods of 10, 15 or 20 years, among others. Choose a home loan that matches how long you expect to be in your home. If it’s just five years or less, then a 5/1 adjustable rate mortgage (ARM) which is fixed for five years will be a much cheaper option. If you’re conservative, try a 7/1 or 10/1 ARM. The rates on these are lower than the 30-year fixed and can save you thousands of dollars over the life of the loan. Especially, those reading our real estate section, you’re obtaining mortgages for the quick turnaround and sell option. So, you’ll be going for short-term mortgages (ARM).
The Mortgage Lender
When looking for a lender, don’t settle on the first bank or lending company that offers you a home loan. Interest rates and fees can vary widely between lenders, and you’ll need to comparison shop to make sure you’re getting the best deal. To simplify the process, use an online tool such the one found below.
Interest rates can differ depending on current market conditions, economic factors and credit history. Generally, if you have a steady job and a high credit score, you’ll most likely qualify for the best mortgage rates, but if you have a few flaws on your credit report, you’ll be considered to be a higher risk. And high risk credit means higher interest rates! That’s another reason to shop around because different lenders offer different mortgage interest rates.
Don’t be fooled by points
Points are an upfront payment of interest companies entice you with in exchange for lower mortgage rates. But, this may boost your closing costs and make the rate appear to be artificially low. This only makes sense if you’re going to be in your home for a very long time. If you’re not, then the savings you’re getting in the lower rate over time is never going to make up for that higher cost upfront.
Mortgage Rate Comparisons
Of course, you’re anxious and want to get started with mortgage pre-approval. The table below gives you a access to the best mortgage rates in your state. You can choose your loan amount needed, loan type, and whether you’re purchasing or refinancing your home to get the ball rolling: