Lowest Mortgage Rates

Almost everyone dreams of owning their own home. Buying a house is a big commitment and could be the biggest purchase of your lifetime. Mortgages Make It Possible To Buy a House Most people do not have enough in savings to buy a home, so they make a down payment and borrow the rest. A mortgage is a legal agreement that allows the borrower to use property as collateral to secure a loan. With a mortgage agreement, the borrower gets a loan to buy a house and the lender gets the right to take action if the borrower defaults on loan repayment. Getting the lowest mortgage rates helps reduce your overall debt burden and the monthly payment you need to make. Factors that Determine Your Mortgage Interest Rate Knowing what factors determine your mortgage interest rate can help you better prepare for the home buying process and for negotiating your mortgage loan. Key factors that affect your interest rate are: • Credit scores • Home location • Home price and loan amount • Down payment • Loan term • Interest rate type • Loan type Types of Mortgages There are different types of mortgages, and understanding the terminology can help you make the right choice. The most common mortgages are: • Fixed-rate mortgages • Adjustable rate mortgages • Second mortgages or home equity loans • Reverse mortgages With a fixed-rate mortgage, you pay the same amount for the entire term (unless you pay more to get rid of debt faster). With a variable/adjustable rate, your monthly payment varies as the interest rate is not fixed. It varies according to market trends Conclusion Buying your first home should be exciting. Understand current interest rates, standard closing costs, homeowner’s insurance and property taxes where you wish to buy a home. Also, be realistic about what you can afford.