Finding the Best Mortgage Rate for Your Needs

If you have found your dream home and are ready to make a purchase offer, congratulations! Shopping for a home is never easy. It is hard to find a home to suit your needs and wants, and you want to purchase a place that you absolutely love, not just a place that you have lukewarm feelings about. Whether you are purchasing your first home or your fifth home, the next step can be one of the hardest. It is time to find a mortgage! Dealing with finances is never fun, and picking a mortgage is one of the biggest financial decisions you will ever have to make. There are a variety of different mortgage rates available for every individual, and taking the time to find the right one for you will ensure you will be satisfied over time.

A mortgage is one of the biggest commitments you will have to make. Mortgage rates and terms vary between lenders so it is important to take the time to research what suits your needs best. Lenders, mortgage brokers and online tools can be great resources to help you with your mortgage. Every type of mortgage has both disadvantages and advantages, and experts can help you understand how each mortgage can affect your future. The wrong mortgage can have a huge negative impact on your financial future and can hinder your lifestyle. It can seem like a good idea to visit one lender to see their mortgage rates, but shopping around will give you the best mortgage rates and terms possible for your needs. Some people find that a well-qualified mortgage broker can be helpful in navigating through the process. At each stop, you will understand what you are looking for more and more, and this information will give you the ability to pick the best mortgage for your future!

One of the biggest mortgage decisions that needs to be made is deciding between a fixed-rate mortgage and an adjustable-rate mortgage. Both of these mortgages are different beasts and suit different financial needs. A fixed-rate mortgage has standard mortgage rates that do not change each month. From month to month, a fixed-rate mortgage payment stays the same. These mortgages allow for better budgeting, but tend to have slightly higher rates. The other type of available mortgage is an adjustable-rate mortgage. The benefit of an adjustable-rate mortgage is that the rates are typically lower than those of a fixed-mortgage, but since the rates change each month, it can be hard to budget and some monthly payments can be significantly higher than others. Both of these mortgages have advantages and disadvantages, and it is important to understand them in order to be sure to get the best mortgage for your lifestyle and needs.

Mortgage rates fluctuate between lenders so it is important to do research and speak with a number of different financial institutions before signing anything. An offer may be tempting to accept, but a much better offer may be available at the bank down the road. It is important to understand that there are many options available and choosing a mortgage will not be as easy as eenie, meenie, minie, mo. The good news is that with the available resources to help you find the best mortgage, you will find mortgage rates and terms to fit your needs and wants if you take the time to find them!

The Benefits of a FHA Mortgage Loan

When it comes to qualifying for a home loan, there are many different types of programs available. With the many different home loan programs available, it is important to choose the best program for your particular mortgage loan needs.

One of the home programs you can choose from is a FHA mortgage. This type of program is designed for 1st time home buyers. FHA home loans can be used to purchase a primary residence or refinance an existing home loan. Below are the many benefits to the FHA program.

Reduce Down Payment

A FHA mortgage loan offers buyers a program with a lower down payment. The current minimum down payment for a FHA loan is 3.5%. The source of the funds for the down payment can also come from many different sources including a gift from a family member or church, a 401K loan or withdrawal, and any money saved up in a checking or savings account. By allowing the down payment to come from many different sources, the FHA mortgage loan program helps buyers purchase their new home.

Seller Paid Closing Cost

FHA loans also allow the seller to contribute up to 3% towards buyers closing cost. This is extremely important in assisting a client purchase a new house and reducing the amount of money needed for closing. Sellers can pay closing cost, prepaid items like taxes and home insurance as well as interest on the loan. For example, if a buyer purchases a home for $200,000, the seller can contribute $6000 towards the buyers closing cost.

Lower Mortgage Rates

For many people, FHA home mortgages offer the best rates. FHA loan rates are not tied to credit scores like the way conventional mortgage rates are. For example, if a client has a credit score of 660, the FHA home loan the rate would be same if their score was 740, but on a conventional home loan, the credit score of a 660 compared to a 740 would see an increase of about.75% to the rate.

Mortgage Insurance

Another benefit in the FHA mortgage loan program is the approval of mortgage insurance. FHA mortgage insurance is approved as long as the mortgage is approved. This is not the same when it comes to a conventional home loan. Many times, a home buyer can be approved for a conventional mortgage, but will not be approved for mortgage insurance. This results in the denial of the home loan, but with a FHA mortgage loan, as long as the loan is approved, mortgage insurance is approved. Also, the monthly mortgage insurance payment for a FHA mortgage is usually less than the private mortgage insurance offered on conventional home mortgage loans.

Mortgage Amount Limits

FHA home loans do have set loan limits that are established by HUD. To determine the loan limit in your area, contact your mortgage loan advisor. For example, in the Dallas – Fort Worth area, FHA loan limits are $271,050.

Streamline Refinances

Finally, one of the best benefits to a FHA mortgage is the ability to do a streamline refinance. A streamline refinance is when a homeowner refinances an existing FHA mortgage loan into a new FHA mortgage loan. The streamline refinance program allows the client to refinance with limited paperwork. Though, it might be in the best interest of the client to consider a full refinance over a streamline. Consult a home loan officer to see which program is best for you!

FHA loans are a great way to refinance or purchase a home. It is important to understand the benefits of each home mortgage loan program that you are applying for and to make sure you are getting the best possible mortgage loan.

Online Mortgages: Online Mortgage Applications and Obtaining Low Mortgage Rates Online

Mortgage Loans

There are several different types of mortgage loans. Some of the main types of amortized loans represent the adjustable rate mortgage and the fixed rate mortgage. Many mortgages are available online as well as online mortgage quotes.

Fixed Rate Mortgage

Fixed rate mortgage interest rate and the monthly payment is always fixed for the duration of the mortgage loan. Some of the common mortgage terms are 10, 15, 20, and 30 years. In the recent years some lenders have been offering terms that are amortized for 40 and 50 year mortgage terms.

Adjustable (Variable) Rate Mortgage

Adjustable or variable rate mortgage interest rate is fixed for an agreed period of time. After the expiration of this time, it will periodically adjust upwards or downwards according to market index levels. Those indices include the Prime Rate, the London Interbank Offered Rate, and the T-Bill (Treasury Index).

Mortgage Rates : Bad Credit Good Credit Game

Lenders refer to the borrowers’ credit reports and credit scores when approving a mortgage application. The better (higher) the score, the better rates a borrower can obtain. Lower credit scores, however mean higher risk to the lender, therefore mortgage lenders will require higher interest rates in order to compensate for the increased risk.

Balloon Type Mortgages

A balloon, or partial amortization loans are the ones in which the mortgage monthly payments are calculated over a certain period of time. The outstanding principal balance is payable at by the end of the mortgage term. This type of payment of the principal is also called a balloon payment. A balloon mortgage loan can either be of fixed or an adjustable interest Rate.

Online Mortgage Applications and Obtaining Low Mortgage Rates Online

Mortgages online can typically be obtained at lower online rates. Many people save thousands of dollars when applying for a mortgage online or when getting an online mortgage quote.