There is a sense of peace that you obtain when you utilize a mortgage rate lock. You have the knowledge that you will not have to take a higher interest rate no matter what rates do once you lock. Of course, not every situation is ideal for locking the rate. Knowing when you should lock and when you should float can help you get the most out of your new mortgage. Definition of … [Read more...]
Basics of Mortgage Interest Rate Shopping
If you have been shopping for a mortgage, chances are you have found the process to be overwhelming and confusing. Besides the hundreds of loan programs, it can still be quite confusing even if you are only looking for the plain vanilla 30-year fixed mortgage, due to the different ways in which the mortgage company quotes their rates and fees. Unfortunately, there is no … [Read more...]
Home Mortgage Interest Deduction Guide
As a homeowner, you can get mortgage interest deduction for the interest paid towards your primary or second home mortgages from your personal income, subject to certain conditions and qualifications. In addition to interest deduction, mortgage points paid towards the loan closing, PMI, insurance premiums and other relevant costs may also be eligible for deduction. In order … [Read more...]
Are the Interest Rates Higher for Subprime Loans?
The interest rate is often the determining factor for anyone trying to get a mortgage. They do not want to pay too much interest because the monthly payments are often too high and the added expense makes owning a home too expensive. But some people have no choice but to take whatever loan program is offered to them, which can mean a subprime loan. So the biggest question is, … [Read more...]
3 Reasons You Might Not Get the Best Interest Rate Advertised
You see that interest rates have dropped and a commercial catches your eye that advertises the lowest rate you have seen in a long time. You run over to the bank that advertised the rate with the high hopes that you will be able to get that rate and save a ton of money every month, only to have your hopes dashed. After completing your application and receiving the interest rate … [Read more...]
What’s in a Mortgage Rate?
Mortgages traditionally come in a 30-year variety; in fact, the most popular home loan by a big margin is a 30-year fixed mortgage. However, a 30-year mortgage isn’t your only option; mortgages also come in a 15-year variety, typically with a significantly higher payment. When should you choose 15, and when should you take 30? Benefits of 30-year mortgages 30-year … [Read more...]
How Long Does it Take to get a Conventional Mortgage?
You finally found a home and now you want to close on it right away! You have the 20 percent to put down and good credit, so you know you will qualify to receive a conventional mortgage. Your biggest concern at the moment is how long it will take to close on the mortgage. While there is no finite time period that you can say you will have your mortgage closed, there are certain … [Read more...]
Watch Out For These Common Mortgage Advertising Gimmicks
If you’ve ever seen or heard mortgage advertisements on TV, the internet, or the radio, you’ve probably heard some pretty exceptional interest rates advertised. By law, all advertised rate quotes have to be legitimate, meaning the lender can’t advertise them unless they can truly deliver on them, but there’s plenty of gimmicks buried in the fine print that make them unrealistic … [Read more...]
Consider your Future Plans Before Choosing a Fixed Rate Loan
When you shop for a home loan, you have many choices when it comes to the terms. A few of those choices include adjustable rate and fixed rate loans. There are vast differences between the two and there is no right or wrong answer that works across the board. Your individual factors and future plans help to make the decision the right one for you. How Long will you Stay in the … [Read more...]
How is your Interest Rate Determined for a Home Loan?
The interest rate is often the most worried about component of a home mortgage. Most people base their decision on the rate they receive. Truth be told, there are many other factors to consider including the closing costs, amount of mortgage insurance, and the terms of the loan, but here we are going to take a look at the interest rate alone and what affects it. No two … [Read more...]