Knowing how to get the best mortgage rate (Low Rate Mortgage) starts with knowing some of the points covered below. Your mortgage is an important investment that involves a lot of planning and attention to detail. Whether you’re a first time home buyer or an experienced real estate investor, we’ll provide useful advice for making the best decision.
Things to Consider
One thing to consider while searching for a low rate mortgage is that mortgages will have either fixed interest rates or adjustable rates. Fixed-rate mortgages lock you into a consistent interest rate that you’ll pay over the life of the loan. The part of your mortgage payment that goes toward principal plus interest remains constant throughout the loan term, though insurance, property taxes and other costs may fluctuate.
The interest rate on an adjustable-rate mortgage can change over time. An ARM usually begins with an introductory period of 10, seven, five or three years (or even one year), during which your interest rate holds steady. After that, the rate may change periodically.
When looking for a low rate mortgage you may also consider paying with points. Discount points are fees borrowers pay to reduce the interest rate on their mortgages. One point is 1% of the loan amount, which typically reduces the mortgage rate by 0.25%, although the reduction can vary. If you take out a loan at 4.5% interest, you might be able to pay a $2,000 fee to reduce the rate to 4.25%.
Closing costs are another consideration when seeking a low rate mortgage. Closing costs are fees charged by the lender and third parties. Closing costs don’t affect the mortgage rate, unless you pay discount points. But they do have an impact on your wallet. Closing costs usually amount to about 3% of the purchase price of your home and are paid at the time you close, or finalize, the purchase. Closing costs comprise various fees, including the lender’s underwriting and processing charges, and title insurance and appraisal fees, among others.
Another great avenue to investigate is to find out if you are eligible for any special programs that make home buying less costly. Many states offer help to first-time home buyers as well as repeat buyers.
Real Estate Funding Solutions is one of the very few lenders across the US that makes the mortgage process very easy for clients in all 50 states and offers uniquely Low Rate Mortgage. Our clients can fill out a 1003 mortgage application or a commercial application through our advanced website rather than scanning those documents. Feel free to email us your completed 1003 at firstname.lastname@example.org if you have already filled it out.