Sunday, March 4th, 2012

Lowest Mortgage Rates

September 17, 2009 by  
Filed under Home Mortgages

When you are getting a mortgage, the first thing that you will ask is about costs. This is natural but you cannot just straight out ask how much you will be paying, how long a mortgage will last, etc. The first thing that you will need to ask is about the cost information and this can mean a whole lot of things. In order to get the lowest mortgage rates, get information on the following.

    • Rates – First thing is to ask your lender for a list of current interest rates with regards to their mortgages. Also ask if these rates are quoted as the lowest. Then go on to inquire about whether the rates are fixed or if they are adjustable. If it is adjustable, keep in mind that the rate and loan payment will vary. This means you should ask just how much it will vary.
    • Points – Points are paid to lenders or to brokers for the loan. These points are usually a part of the interest rate. Ask about the points offered because the more points that are paid usually mean that the rate will be lower. You can check a newspaper to get information about the rates and points but also ask your broker or lender about these too so you can have something to compare. The points should be quoted to you in a dollar amount so that you will know exactly what you will need to pay.
    • Fees – Mortgages will always involve having to pay so many fees. These can include loan origination fees, broker fees, transaction costs, settlement fees, and closing costs. You will need to get the estimate for all of these fees and brokers are obliged to give them to you. Nevertheless, you should still ask for the quote because you can negotiate these fees so you can get lower rates. Ask what the fees will include and then ask for explanations regarding fees that you don’t understand at all.
    • Down Payments – This is probably one of the last things you will need to ask but be aware that most brokers or lenders will expect you to pay a 20% down payment on the home purchase. There are many that require less but this means that you will need to buy private mortgage insurance which is just additional cost. This insurance is needed to protect the lender in case you as a borrower will fail to pay.

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