How to Find the Lowest Mortgage Rate
When you are checking out various loan offers from different lenders, you want to find the lowest mortgage rates today. But just as it’s important to get a good deal on a car loan or a home loan or even credit card interest rate, the same is true when it comes to your home loan. You don’t want to overpay, but you also don’t want to underpay. Here’s how to find the lowest mortgage rates today.
Your credit score plays a major role in getting the lowest mortgage rates today. If your credit score is below about 600, you really shouldn’t even be looking for a loan amount that is based on this credit score. If your credit score is lower than that, you still have options, but they are not as good as they could be. You will probably end up with the lowest loan amount possible, but then you will probably be paying dearly for it, too. So unless you have a tremendous credit score, stay far away from the jumbo rates.
Another factor that affects your chances of finding the lowest mortgage rates today is the actual state of the economy. In general, mortgage lenders like to have a fairly accurate picture of the economy, although the accuracy of individual figures can vary from one month to another. When you are researching potential mortgage lenders, it’s always a good idea to do your homework ahead of time so you know where you stand. Check out your local newspapers or magazines, look at the stock market, and take a look at what some of the leading mortgage lenders are saying about their overall standing in the economy.
Today’s economy is still in a state of flux, so expect a lot of fluctuation when it comes to interest rates, mortgage loans, and other financial figures. It’s important that you shop around and find the lowest mortgage rates today but don’t make the mistake of putting all of your eggs in one basket. Instead, focus on finding the right mortgage for your particular situation. Whether you are looking at fixed or adjustable rate mortgages, there are plenty of sub-prime lenders available to help you out.
If you own a home and you plan to live in it for a few years, then you may want to think about refinancing to a low fixed mortgage rate instead of settling for a low variable mortgage rate. If you take this route, make sure that your income is sufficient to justify the cost of the new mortgage payment every month. Don’t forget to check into the possibility of an interest-only mortgage if you qualify. Even if you are planning on living in your new home for only a couple of years, a 30 year mortgage rate can save you money compared to a variable mortgage that jumps to a much higher rate after a couple of years.
Another thing to keep in mind is that although fixed mortgage rates are lower than they have been in recent history, that doesn’t mean that they will remain that way for very long. Mortgage rates are tied to the prevailing market and they can only go up, down, or remain at their present level for an allotted amount of time. Once the current rates go back up, your payments will likely increase as well. So if you are thinking about refinancing for a better interest rate, then you should also plan on a larger loan amount when comparing to your current payment amount. So if you owe $7500 and your current rate is 2.5%, then you should consider a refinance for a loan that is equal to, or at least close to, the amount you currently owe.
While many people are hesitant to use a fixed mortgage rate, there are many advantages to such a plan. One of the major advantages is that your monthly payment can be locked in for several years, which will keep your monthly payments at a level that you can afford. The second major advantage to fixed mortgage rates is that they do not fluctuate as much as adjustable mortgage rates. Finally, fixed mortgages are a good option for borrowers who want to lock in a certain interest rate over the long term. If you plan on building up equity in your home over the long run, then you may find that a fixed mortgage is the best option.
Finding the lowest mortgage rate does not have to be a big chore. By using one of the many online mortgage rate websites, you will be able to quickly compare lenders and narrow down your search to lenders that offer the lowest level of interest. You will need to submit your information to several lenders in order to obtain the desired quotes. Once you receive the quotes, read them carefully and make sure that the interest rate is what you expected it to be. Then compare all of the lenders’ quotes to get an idea of who is offering the lowest mortgage rates.