How to Find Current Mortgage Rates

Опубликовал Admin
2-10-2016, 02:05
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The interest rate charged on a mortgage is based on a number of factors. Market conditions and government lending rates are among the factors that influence the rates available to consumers shopping for a mortgage. Other factors, such as the credit rating of the borrower, the size of the down payment, and the length and type of loan can also affect the interest rate of your mortgage. Because there are so many variables, available mortgage rates often change daily. Here are some tips on how to find current mortgage rates.

Steps

  1. Check the websites of the banks and credit unions in your area. Nearly every lender has a website, and most list interest rates for the types of mortgages they offer. Some also have calculators available to help you determine what your monthly mortgage payment would be at a particular interest rate or determine whether refinancing your current mortgage is a cost-effective option. Many financial news and real estate websites also offer these tools.
  2. Use a mortgage-shopping website. A number of websites are available to help you compare mortgage rates. Most are updated constantly to ensure that you have the latest information available.
  3. Check your local newspaper. Many newspapers print mortgage rates from local lenders periodically. They can usually be found in either in the business or the real estate section.
  4. Contact a mortgage broker. Brokers will contact a number of lenders on your behalf to find those which ones are interested in lending to you. However, since they're not necessarily obligated to find the best deal available, it's wise to use multiple brokers to shop around and then compare results. Be sure you ask about the fees (if any) when using a particular broker.

Tips

  • Work to improve your credit score as much as possible prior to applying for a mortgage. Your interest rate will depend in large part on your credit score. Higher credit scores generally mean lower the interest rates. Obtaining a copy of your credit report and correcting any errors you find will help improve your score. Paying off debts or lowering your debt-to-income ratio will also help.
  • Lock in your mortgage rate once you find the loan you want. This means you'll sign a contract guaranteeing you a specific interest rate if you close on a home within a certain amount of time, which is usually 60 to 90 days.

Warnings

  • Consider all costs associated with a mortgage, not just the interest rate. Points are the fees paid to the lender; generally speaking, the lower the interest rate, the higher the points will be. There may be additional fees involved with a particular mortgage. Rates also depend on the percentage of down payment, and that in turn may trigger a requirement for private mortgage insurance. Be sure you understand the total cost of the loan.
  • Expect to find interest rates that vary based upon the loan's length and whether the rate is fixed or adjustable. Adjustable rates may go up over time, which will increase your monthly mortgage payment.
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