Are You Ready for a Home Mortgage Loan?Buying a Home and committing to a Mortgage can be very scary! A home mortgage loan is the largest debt that most Americans will take on in their lifetime. As such, making the decision to take out a mortgage is not one that most first time homebuyers take lightly. Not only will your monthly mortgage payments probably be the largest bill that you face each month, but the total amount of debt realized with a home mortgage loan can have a staggering, and sobering effect on the first time home buyer. I can remember the months leading up to my decision to fill out a mortgage application. I had nightmares about loosing my job, not being able to keep up with my payments and finding myself homeless. And those were on the good nights when I was able to sleep at all! Committing to a Home Mortgage Doesn't Have To Cost You Your Sleep Get the Best Rate on Your Home Mortgage Loan Home mortgage interest rates hit record lows in 2004 and have remained at record lows as we go through 2005. It is possible today to get a thirty-year fixed rate home mortgage loan for under five percent, and an adjustable rate mortgage can be found for under four percent if you look hard enough! However, record low mortgage rates do not mean that you should take the first mortgage offer made to you, even if it sounds low. On the contrary, it means that shopping around for the best mortgage possible may be even more beneficial then during a high market period. If you solicit mortgage rate quotes from enough lenders and pay attention to economic news, you might be able to secure a home mortgage loan at an interest rate that you will not see offered again in your lifetime. Solicit Several Mortgage Rate Quotes In order to get the best deal on anything in America, it is important to shop around. Securing a home mortgage loan is no exception to the rule. If you are the type of consumer who likes to walk into the first store that you see and buy what you need without comparing your options, then you might also be inclined to accept the first home mortgage loan offered to you . Doing so would be a big mistake. In order to get the best possible home mortgage loan you will need to "shop" and compare lenders. Having a substantial down payment on the home that you wish to purchase and applying for a smaller home mortgage loan is another way to increase your chances of getting mortgage approval. Again, this goes back to the risk involved to the lender for financing your loan. Many mortgage lenders will require that you have a 20% down payment on the home, and then they will grant mortgage loan approval for the remaining 80% of the purchase cost. This helps to offset the lender risk. In the event that you are unable to keep up with monthly mortgage payments and you default on the loan, the lender will have a better chance of recovering his money through foreclosing on and selling the home if the loan is a smaller percentage of the market value of the home. Therefore, if you can save 30% or more towards a down payment on your home, you will be lowering the risk to the lender and increasing your chances of getting mortgage approval. You May Have To Accept a Higher Interest Rate on Your Mortgage Loan If you wish to secure a mortgage despite your bad credit history, and you do not have a sizeable down payment saved up, you may have to agree to a mortgage at a higher interest rate than that which is being offered to low risk borrowers. This is because the lender will want to be compensated for his increased risk level. This should not necessarily prevent you from taking the loan, though. If you secure the mortgage and are diligent about making timely payments, after paying on it for awhile you will improve your credit history. Then you can refinance the mortgage at a later date with a better rate offer. Michael Contaro For more articles by Michael Contaro, you can go to http://www.atozonline.com
MORE RESOURCES updated Thu. March / 28 / 2024 Types of Mortgage Refinance Options Bankrate.com Will Mortgage Rates Go Down in 2024? What Homebuyers Should Expect Business Insider How to Refinance Your Mortgage NerdWallet Mortgage Refinance Rates: Compare Current Rates Business Insider Underwater Mortgage: What To Do Bankrate.com Mortgage Interest Rates Today, March 27, 2024 | Rates Down Slightly as Homebuying Season Ramps Up Business Insider When to Consider Refinancing Your Mortgage Business Insider 30-year refinance rates: What to know CNN Underscored Mastering Rate-and-Term Refinance: a Complete Explainer Business Insider The best mortgage lenders for refinancing in March 2024 CNN Underscored Should You Refinance Your Mortgage In 2024? Bankrate.com 15-Year Mortgage Refinance Rates: Compare Current Rates Business Insider Mortgage Relief and Mortgage Assistance Programs [2024 ] The Mortgage Reports MBA: Mortgage Applications Decreased in Weekly Survey Calculated Risk Current mortgage refinance rates CNN Underscored Best Mortgage Refinance Lenders In 2024 Bankrate.com Current mortgage interest rates: Mortgage rates today CNN Underscored VA Refinance Rates - Current VA Loan Refinance Rates Today Business Insider Best Mortgage Refinance Lenders of March 2024 Business Insider Refinance Requirements: What You Need to Refinance Your Home in 2024 The Mortgage Reports When to Refinance Mortgage: Is it Time? - Buy Side from WSJ The Wall Street Journal Mortgage Rates This Week NerdWallet Cash-Out Refinancing: How It Works, When To Do It Bankrate.com Conventional Refinance Rates and Guidelines for 2024 The Mortgage Reports How Soon Can You Refinance a Mortgage Loan? 2024 Rules The Mortgage Reports How To Refinance An Underwater Mortgage Bankrate.com How Soon Can You Refinance a Mortgage? NerdWallet Mortgage Rates Chart | Historical and Current Rate Trends The Mortgage Reports Current 15-year refinance rates — and lenders that offer them CNN Underscored Best Refinance Lenders of March 2024: Refinance Your Mortgage The Motley Fool Can You Refinance With No Income Verification in 2024? The Mortgage Reports Should I Refinance My Mortgage Now? When to Refinance As Rates Drop Business Insider What Credit Score Do I Need To Refinance? Bankrate.com Office of Research blog: A look at cash-out refinance mortgages and their borrowers between 2013 to 2023 Consumer Financial Protection Bureau The Sales Pitch for an 8% Mortgage: Buy Now, Refinance Later—for Free The Wall Street Journal How To Get The Best Refinance Rate Bankrate.com CFPB Releases Study of Refinance Mortgage Loans Between 2013 and 2023 Consumer Finance Monitor Save up to $1,500 on a Mortgage Refinance With the New FHFA Program Business Insider Should You Refinance Halfway Through Your Mortgage? Bankrate.com Mortgage Interest Rates Today, March 20, 2024 | Could Rates Drop After the Fed Meeting? Business Insider Mortgage Rate Forecast February 2024 Bankrate.com Mobile Home Refinancing | Loans & Rates 2023 The Mortgage Reports How To Refinance Your Car Loan In 6 Steps Bankrate.com
|