A home is a place where you welcome your friends and family and create memories. Finding a low-rate mortgage so you can buy that house will save you a lot of money over the life of the loan, and you may be able to pay it off faster.
Mortgage Rates
At the time of this article, mortgage rates are slowly climbing but are still at historic lows. When rates are low, it’s a great time to get pre-approved for a home loan. Low mortgage rates of 3% are fantastic, but rates have been as high as 16% in the past! To find current mortgage rates, reach out to a mortgage lender or simply Google “mortgage rates”.
Although mortgage rates are expected to gradually increase over the coming year, you can take advantage of low mortgage rates right now. Talk to your real estate agent and your lender and find a home before rates increase.
“We expect mortgage rates to continue to rise modestly which will likely have an impact on home prices, causing them to moderate slightly after increasing over the last year." - Sam Khater, Freddie Mac’s Chief Economist
Learn more about the mortgage payments, interest, and principal in this article.
Credit Score
Your credit score will affect the mortgage you qualify for. For example, if your FICO score is 600-670 you may be eligible for loans such as FHA, VA, and non-qualified mortgages. Other factors that lenders will consider when qualifying you for a mortgage are proof of income, 2-year job history, a good credit history (ex. no late payments), and if your debt is less than 45% of your pre-tax income.
- Proof of income
- 2-year job history
- Good credit history
- Debt less than 45% of your pre-tax income
High credit scores, over 700, will be much easier for you to qualify for a mortgage. When you have a high credit score, lenders are more confident that you will pay back your home loan.
Conclusion
Finding a low mortgage rate will help you save thousands and thousands of dollars over the life of your home loan. Mortgage rates fluctuate, so talk to a local lender to learn about current rates and if they are falling or rising. Your mortgage lender can determine your credit score or you can go online to find free credit score calculators. Find a home you can afford at a low rate and start creating memories!
If you need help finding a real estate agent in your area, let us know. We will tap into our network of real estate professionals and see who's available in your area. Comment below or email info@reazo.com.
Check out our extensive finance guide for information on home finance options:
