Category: mortgage

A Few Simple Strategies That Can Help You Find The Best Mortgage Rate

The most important question that everyone asks them is just what does it take to find the best mortgage rate. Fortunately, best mortgage rates are available to anyone that understands the need to simply apply the correct strategies, many of which have been tried out by many people with much success. Such mortgage rates help in keeping costs at a reasonable level and in fact it only requires being selective and careful about the options open to you when choosing your mortgage lender.

Shop Around

Obviously, by shopping around for mortgage rates you will stand a better chance of identifying the best mortgage rate. It also requires spending time in being selective and seriously considering every option in terms of their impact on your financial situation. The fact of the matter is that the mortgage industry is driven by extreme competition and so the more sources you tap the greater are your chances of landing the best mortgage rate.

Once you can tell a mortgage lender about a better deal that another lender is offering; chances are that this lender will try and better that offer and by using this way of thinking to your advantage you stand to get better rates and can easily land the best mortgage rate with just a little bit more perseverance and endeavor.

A loan broker too can provide you with useful advice on landing the best mortgage rate. These brokers know all about which lender is offering the best mortgage rates and also about special deals and so this knowledge can then be put to good use in finding the best mortgage rate.

It is also a good idea to make a list of mortgage fees as well as costs associated with getting a mortgage plan. Once you start accounting for the fees and then question the lender regarding the reason for being charged these fees you can use your best negotiating skills in order to get a lower rate.

It is also possible to get the best mortgage rate by making it a point of steering clear of private mortgage insurers because with them you would only end up paying more for your mortgage. When it concerns jumbo mortgage rates you need not be surprised if these vary considerably. In fact, these mortgage rates often attract higher rates of interest; so, act with great care always.

The bottom line regarding the best strategy to get the best mortgage rate is that it will always pay to get the terms and mortgage rates in writing as this will help provide protection to you from the more unscrupulous mortgage lenders.

If you are about to sign for a 30 year mortgage rate, you may be more than a little overwhelmed at the size of the commitment you are undertaking. While there is no doubt that a mortgage loan is one of the biggest financial obligations you will ever take on, there is some comfort in knowing that you went into the process informed about mortgages work. We have the basics of what goes into a 30 year mortgage rate, so you can rest assured that the biggest loan of your life will be easy to understand and familiar in every way.

The P & I
The mortgage loan basically consists of two parts; the principal amount, which is the actual amount of your loan, and the interest, which is the money you pay to the lender for the privilege of holding your mortgage loan with them. This amount will be directly affected by the 30 year mortgage rate that you negotiate with your lender. These two figures are generally lumped together in what is known as the “P&I” payment, and will usually remain consistent throughout the life of the loan unless you have an adjustable rate that will alter the interest amount from year to year.

The Term
A 30 year mortgage rate will be affected by the current market trends, but it will also be determined in part by the type of loan terms you and the mortgage broker agree to. The 30 year mortgage rate can be a traditional fixed interest rate that will be consistent throughout the life of the loan. This is good news when you end up with a rate that is below market trends, but not so good if your 30 year mortgage rate is 10% and the current market shows an average of 5.5%. The good news is that you can always refinance your loan to get a better 30 year mortgage rate; the bad news is that it costs money in fees and points to do so.

Discount Points and Locking In
These terms will be thrown around by your loan officer frequently, but it can be hard to understand exactly what they mean. The discount points are often paid at the loans closing, and are usually used to buy down a lower 30 year mortgage rate. Locking in means that you and your lender are committing to a set 30 year mortgage rate, even the rates fluctuate again before the loan is actually closed. Lenders will usually lock in rates at when you are 30 or 60 days out from closing your loan, and sometimes they will charge a fee to do so. Check with your lender to see what their policies are for locking in the best mortgage rate.

The 30 year mortgage rate may still seem like a big commitment, but with a bit of knowledge about how the process works, it can seem much easier. If you are interested in a new first mortgage or a refinance, contact a mortgage loan officer today.