HOME MORTGAGE RATES: FINDING THE BEST ONES
With so many mortgage rate plans out there, how do you find the best one for you?
Shopping for your mortgage loan can be as time-consuming as shopping for your home. With so many mortgage rates and programs available, how will you find the best interest rate for you? This article covers the most common types of interest rates such as fixed rate mortgages, adjustable-rate mortgages, "Interest Only" mortgage rates, and balloon payment mortgages, and some sources for your home mortgage loan. Armed with some basic information on how to find the right mortgage loan for you needs, this phase may have gotten just a little easier. Some things you will need to take into consideration are your credit rating, income level, type of employment and how long you've been on the job, and so forth. The best interest rates are generally available to those with a good credit rating and employment specifics. But even if you don't fit this description, take heart! There are mortgage loans available for you, too!
Where To Find Mortgage Rates and Loan Information
Get the latest mortgage rates!
There are many sources available online to locate mortgage rate and loan information, but we only have room for a few. Here are just a few helpful sites that we found.
Mortgage Interest Rates Explained
Fixed rate mortgages are just what their name implies: The rate is locked in for the duration of your mortgage loan. If the interest rates climb again, you are protected against these increases. If they should fall, you cannot take advantage of the lower rates without refinancing your mortgage.
Adustable rate mortgages are not locked in, but will vary with the current rate. If you plan on being in your home for only a few years before selling and buying another, you may want to consider this type of loan. If the rates fall, you win, but if they rise, your interest, and thus your payment, will also rise. If you consider this type of loan, be sure to study it out carefully before signing.
Interest only rates are just that--your payments go towards the interest only and not to the principal, or the house itself. The only way you will realize any equity on this type of program is if the value goes up on your home. Another financing possibility if you are not planning on being in your home for long.
A Balloon Payment interest rate requires a very large payment at the end of the loan. Usually the loan can be refinanced to take care of this payment if you do not plan to sell before the end of the contract.
As a final word of advice, we recommend shopping around before settling on a mortgage rate. You probably won't get the best quote with the first place you try, so keep shopping until you find something you like.
Mortage insurance is the facility provided by each insurance company to those lenders who availed the mortage loans facility from the financial institution. This insurance facility usually covers the various risks. Like if you owed money for the the construction of your home, then this home insurance covers fire risk, theft risk, etc.