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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.
For more articles by Michael Contaro, you can go to http://www.atozonline.com
MORE RESOURCES updated Thu. February / 29 / 2024
HOME-MORTGAGE LENDING NEAR TWO-DECADE LOW AS SLUMP CONTINUES ACROSS U.S. DURING FOURTH ... - Morningstar
HOME-MORTGAGE LENDING NEAR TWO-DECADE LOW AS SLUMP CONTINUES ACROSS U.S. DURING FOURTH ... Morningstar
Mortgage Interest Rates Today, February 29, 2024 | Rates Hold Steady After Spiking Earlier This Month - Business Insider
Mortgage Interest Rates Today, February 29, 2024 | Rates Hold Steady After Spiking Earlier This Month Business Insider
Mortgage Rates Edge Down Investopedia
Mortgage interest rates for today February 29, 2024: Where are rates wrapping up for February? - AOL
Best Mortgage Refinance Lenders of February 2024 | U.S. News U.S News & World Report Money
How Soon Can You Refinance a Mortgage? NerdWallet
Will Mortgage Rates Go Down in 2024? What Homebuyers Should Expect Business Insider
Mortgage Interest Rates Today, February 28, 2024 | Rates Steady Ahead of Latest Inflation Report - Business Insider
Mortgage Interest Rates Today, February 28, 2024 | Rates Steady Ahead of Latest Inflation Report Business Insider
30-Year Mortgage Rates Fall Investopedia
Mortgage Interest Rates Today, February 27, 2024 | Rates Ease, but They're Still Up From Last Month - Business Insider
Mortgage Interest Rates Today, February 27, 2024 | Rates Ease, but They're Still Up From Last Month Business Insider
Mortgage Refinance Rates: Compare Current Rates Business Insider
Mortgage Interest Rates Today, February 25, 2024 | Rates Increased Last Week — Here's When They Might Go Down - Business Insider
Mortgage Interest Rates Today, February 25, 2024 | Rates Increased Last Week — Here's When They Might Go Down Business Insider
Mortgage Interest Rates Today, February 24, 2024 | Rates Continue Inching Up Near 7% - Business Insider
Mortgage Interest Rates Today, February 24, 2024 | Rates Continue Inching Up Near 7% Business Insider
Mortgage Interest Rates Today, February 26, 2024 | Rates May Drop More Slowly Than Expected This Year - Business Insider
Mortgage Interest Rates Today, February 26, 2024 | Rates May Drop More Slowly Than Expected This Year Business Insider
Current mortgage refinance rates CNN Underscored
Can You Refinance With No Income Verification in 2024? The Mortgage Reports
California, United States Luxury Real Estate Home California Listings
How to Refinance Your Mortgage NerdWallet
Average Mortgage Interest Rates: Mortgage Rates by Credit Score, Year, and Loan Type - Business Insider
Average Mortgage Interest Rates: Mortgage Rates by Credit Score, Year, and Loan Type Business Insider
Best Mortgage Refinance Lenders In 2024 Bankrate.com
Scam ads misrepresent FHA cash-out refinance plan VERIFYThis.com
VA Refinance Rates - Current VA Loan Refinance Rates Today Business Insider
Refinance Requirements: What You Need to Refinance Your Home in 2024 The Mortgage Reports
Will Rates Go Down in March 2024? | Rates Forecast The Mortgage Reports
Cash-Out Refinancing: How It Works, When To Do It Bankrate.com
When to Refinance Your Mortgage: 5 Times to Consider Refinancing Business Insider
Mortgage Rates This Week NerdWallet
30-year refinance rates: What to know CNN Underscored
CFPB Releases Study of Refinance Mortgage Loans Between 2013 and 2023 Consumer Finance Monitor
How To Refinance An Underwater Mortgage Bankrate.com
What Credit Score Do I Need To Refinance? Bankrate.com
The Great Pandemic Mortgage Refinance Boom - Liberty Street Economics Liberty Street Economics -
The best mortgage lenders for refinancing in February 2024 CNN Underscored
Should I Refinance My Mortgage Now? When to Refinance As Rates Drop Business Insider
How Soon Can You Refinance a Mortgage Loan? 2024 Rules The Mortgage Reports
Conventional Refinance Rates and Guidelines for 2024 The Mortgage Reports
When to Refinance Mortgage: Is it Time? - Buy Side from WSJ The Wall Street Journal
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
Homeowners, get ready to date the rate. Refinancing is making its comeback as mortgage rates drop to 7% - Fortune
Homeowners, get ready to date the rate. Refinancing is making its comeback as mortgage rates drop to 7% Fortune
Refinance Market 2024 Is Booming Across the Globe by Share, Size, Growth, Segments and Forecast to 2032 - Taiwan News
Refinance Market 2024 Is Booming Across the Globe by Share, Size, Growth, Segments and Forecast to 2032 Taiwan News
10-year refinance rates: What to know CNN Underscored
Should You Refinance Halfway Through Your Mortgage? Bankrate.com