Fixed Mortgage Rates Vs. Adjustable Mortgage Rates
Understanding mortgage rates can be a complicated process. Realtors are the best resources to thoroughly understanding the market and current mortgage, and can act as a guide in the homebuying process. When it comes to mortgage rates, there are different options. With a fixed rate mortgage, the interest rate is set when the loan is taken out and never changes. A fixed rate mortgage comes with a loan term of either a 15 year fixed rate or 30 year fixed rate, and come with varying loan terms. With an adjustable rate mortgage, the interest rate can fluctuate to increase or decrease over time. Adjustable mortgage start out with an initial fixed rate period and then allows for change in the interest rate. The initial fixed rate period can last anywhere from one month to 10 years and varies by lender. Current mortgage rates depend on the housing market and are ever changing. So, depending on your need, a fixed mortgage rate or an adjustable mortgage rate may be best for you. Mortgage lending companies can help you figure out exactly which is best at the time.
Home Loans That Help You Get The Home Of Your Dream
Most homebuyers opt for mortgages when buying a home. If you are not one of the lucky few who is able to pay cash for a home, a mortgage is the way to go! According to the U.S Census Bureau, over 63% of Americans are currently homeowners, making mortgages and interest rates the norm for most people. With an FHA loan, the borrowers credit score must be atleast 580 and they must have 3.5% of the home price to put as a down payment. Unfortunately, according to a study done in 2016, around 59% of Americans wish they understood their mortgage agreements better. Don’t hesitate to ask questions when working with mortgage lenders. It is their job to give their best service and get you the best agreement for your needs. Most mortgage companies take their time to process the entire loan, so take all the time needed to ask questions.
First Time Home Buyer? No Problem!
Not surprisingly, according to the National Associate of Realtors, around 34% of those looking in the market are first time homebuyers. A good mortgage company is an ally for all first time homebuyers. Finding up to date mortgage rates can be simple when working with a quality, reputable mortgage lender.