Home Mortgage Rates
The economy needs a bit of stimulation and the feds are lowering down
home mortgage rates to get it up and running again. Borrowing money
with lowered home mortgage rates has never been this easy or this
cheap. So, why not take advantage of this lowered home mortgage rate
and get a chance to refinance your home and still save some?
Fixed Rate Home Mortgage Rates
Even though home mortgage rates are low, fixed rate home mortgage
rates roughly remain the same. This is due to the fact that fixed
rate mortgage rates are based on bond rates and not on fed rates.
For most people, refinancing a home only makes sense if the new home
mortgage rate is 2% lower than your current rate. This idea no longer
applies in today’s market though, where loan terms are no longer limited
to 30-year fixed rate mortgages. Lenders today are offering fixed
rate mortgages with 15, 20, or 30 year terms. And if that’s not enough,
lowered home mortgage rates can be achieved through five or seven
year balloon payments and a wide variety of adjustable rate mortgages.
Adjustable Rate Home Mortgage Rates
Home mortgage rates are sure to be affected more if you have an adjustable
rate mortgage. This is because adjustable rate home mortgage rates
depend largely on the changes in federal rates. Also, adjustable rate
home mortgage rates are short-term interest rates like treasury bill
If you’re planning to keep your home for only a short period of time,
then an adjustable rate mortgage might be the best choice for you.
Adjustable rate home mortgage rates are significantly lower than fixed
rates, especially during the initial years of the loan term. Lower
adjustable rate home mortgage rates means lower monthly payments,
making it easy for people to qualify for a loan.
However, if you expect to keep your house for a bit longer, then it
is advisable if you look into the market for fixed rate home mortgage
rates. Adjustable rate home mortgage rates only work if you stick
with it for a short while.
"A coward is a hero with a wife, kids, and a mortgage."
- Marvin Kitman
Home Equity Loans
The home mortgage rates for home equity loans follow the prime rate.
This means that home mortgage rates of home equity loans are directly
affected by the cut backs on fed rates. However, home mortgage rates
for home equity loans have always been perceived to be higher than
the home mortgage rates of other loan types.
Find a home with the Lowest Home Mortgage Rate
Once you understand the advantages of each type of mortgage – whether
a fixed rate or adjustable or a home equity loan, the next step of
the process is finding yourself a home. You can find the best homes
with the lowest home mortgage rates possible by enlisting the help
of a real estate agent. But before you do that though, it is important
that you have some basic idea as to what you want your home to be
For instance, how big would you like your lawn to be? How many rooms?
Do you need that much extra space? Once you’ve answered these questions
and a few more, it is time for you to do a little shopping for the
best home mortgage rates. For most people, the Internet is the place
to start when looking for home mortgage rates.
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