For those of us who have the dream of owning our own homes but we keep wanting to wait until the mortgage rates are as low as they possibly can get now might be the perfect time for starting the house search and making your dreams come true. Whether it is your first home or a second or third home the rates will not stay low forever so now is the time to act. It is important that you contact your mortgage loan officer and a real estate agent quickly to take advantage of the low mortgage interest rates. This article will explain to you the difference between a few of the different types of loans as well as where to research and compare the best fixed mortgage interest rates that are out there. Because mortgage loan interest rates are at an all time low if you are in the market for a new home now is the time to act. These loan interest rates will not stay low for much longer. The economy dictates what direction the rates will go. The better the economy the higher the rates. It is important that if you want a low interest rate that is fixed you better apply for and be pre approved for your mortgage loan now.
The 30 Year Fixed Mortgage Loan
One of the most common types of mortgage loans is a 30 year fixed mortgage loan. This is when the interest rate that you pay on a monthly basis is fixed meaning that it will not change at all throughout the life of the loan. Even if the rates go up or down your mortgage rate is permanate with a 30 year fixed mortgage rate. You will never have to worry about your mortgage costing more down the road. The average 30 year mortgage fixed rate right now is approximately 4.14%. This just happens to be the year low. Who knows If the low will go up or down any time soon.
The 15 Year Fixed Mortgage Loan
The other common type of mortgage loan is the 15 year fixed mortgage loan. This loan is the exact same type of loan as the 30 year fixed loan but the length of the life of the loan is much shorter. In fact the length of the loan is cut in half as it is only 15 years long. Currently the mortgage rate for a 15 year fixed loan is around 3.27%. If you can afford a larger mortgage payment every month and can do this every month for 15 years this might be the best plan for you. Your loan will be paid in full much quicker than if you were to have a 30 year fixed mortgage loan.
Jobs Can Control The Shift In Mortgage Rates
There are many different factors that are considered when figuring mortgage rates. One of these factors is in the world of jobs. Right now the mortgage rates are low due to the economy and the job rates that are being discussed. However it is common knowledge that the mortgage rates will not remain immune to the economy improving on a daily basis and eventually the rates will start to climb to higher rates. This is a process that is not a steady process and simply because the employment rate one month is high it does not mean the mortgage rates are going to climb immediately. It is something that takes time to adjust.
Finding The Best Home Mortgage Loan Rate
There are many different ways for finding the best mortgage loan rate around. The best thing for a future home owner to do is to research all of the available rates and then decide which one will be best for your financial situation. The Internet is the best place to start your research. Online you can compare several different lenders at one time and decide which loan will work the best. You can also do this when looking to refinance your current mortgage loan. Another way of finding the best interest rates is to ask family and friends.
Purchasing a home is a very big decision and the topic of mortgage loans and their interest rates should be a top priority. Getting the lowest rate should be your goal and knowing how to do that will help you to succeed.