By Susan Willis

Going from being a renter to a homeowner is an impressive accomplishment that not everyone achieves in their lifetime. There is something very satisfying about having the knowledge that you have been able to work your way to the point where you can own your own home.

For someone who is one the verge of homeownership or who may be considering moving to a different home, you know how important getting a low home loan interest rate can be to the timing of your decision. Just a percentage point or two in either direction can make a huge difference in the total cost of your loan – as well as how much you have to pay each month in mortgage payments.

If you are interested in learning more about current home loan rates, here are 5 tips for how to evaluate today mortgage rate from an historical perspective:

1. Determine the type of loan for which you would like to compare interest rates:

The secret to making sense of current home loan rates is to understand them in their historical perspective. In other words, you need to look at how they are “trending,” meaning: are they generally higher or generally lower today than at various times in the recent past?

To do this type of research successfully, it is useful to start out by deciding what type of loan you believe you will be taking out when you apply for your mortgage. The most popular options are fixed rate mortgages and adjustable rate mortgages (ARMs).

Specifically, the most popular four types of loans are: 30-year fixed rate, 15-year fixed rate, 5-year ARM and 1-year ARM. (Note that with an ARM, after the 5- or 1-year period goes by, the loan switches from being a fixed-rate loan to being an adjustable rate loan).

2. Look for historical trends for that rate:

Now that you have selected a certain loan type, you will want to take a look at two things:

* the current average interest rate for that loan type as it stands today

* how that interest looked at various points in the past, including over the past three months, one year, and 20 years

note: you can find some good historical charts by running a search for “historical average mortgage rates.”

3. Get a feel for how today’s rates compare to historical trends:

Now, ask yourself: how does today’s rate look generally as compared to each of those three periods of time – lower or higher? Obviously, if today’s rate seems low as compared to one or more of these historical views, it may be a sign that this is a good time to move forward with a home loan purchase.

4. Realize that the rate for which you qualify may be different than the average rates:

Of course, the home loan rate for which you will personally qualify depends on a combination of factors, including both today’s average mortgage interest rate and your own credit (FICO) score.

5. Apply to multiple home loan lenders in order to find the best rate:

To increase your chances of qualifying for the lowest-possible home mortgage rate, be sure to apply to at least 3-4 mortgage lenders. Only then can you be sure you have secured the very best rate.

Consider these 5 tips as you investigate the current home loan rate in the context of historical trends.

About the Author: Find financial calculators, mortgage loan & credit tips at:

Approve My Loan

.

Source:

isnare.com

Permanent Link:

isnare.com/?aid=614724&ca=Finances

3 Useful Mortgage Tips for First-Time Buyers

by

Ted Simpson

The real-estate market in the USA is showing clear indication of improvement. If you\’ve been planning on buying the home of your dreams then you need to take action immediately. Despite the fact that interest levels have been increasing continuously within the last few couple of months, with some effort you may still get a great offer. It\’s also worth noting that there are numerous foreclosed homes on sale right now but the number is expected to reduce in future months. In a few months it may become impossible for you to chose a low cost foreclosed house.

If you\’re a first-time customer then you might have a lot of questions in your head. On this page we\’ll try to answer some of these questions and support you in finding the best first time buyer mortgages 2013.

– It\’s obvious that you can not get a good home loan offer if you don\’t have a decent amount of money for first deposit. In the early 2000s home loan specifications were really lenient and it was simple to find 0% downpayment loans. Sadly that isn\’t the situation any longer. Right now 95 mortgages are the most common. To get these loans you have to pay 5% of the loan upfront. FHA house loans are the only mortgages that allow a down payment lesser than 5% however these financial loans have drawbacks of their own.

If you don\’t have ample funds for deposit then you should start saving right away. Keep a close eye on your spending habits and get rid of all of the needless expenditures. If you don\’t have a bank account then this is the time to get one. These days some home loan providers are offering savings accounts that are linked to the mortgage. The more money you save, the lower mortgage rate you\’ll receive. Keep in mind that this might be your final opportunity to reap the benefits of record low loan rates.

– In regards to house prices, location can make a major difference. In certain cities prices are unbelievably low while in others they are sky high. If you can relocate very easily then you should check the prices in a number of cities and select the most cost effective option. Prices may also differ within a city. For instance if you wish to purchase a house in the middle of the city then naturally you\’ll have to pay more. On the other hand if you do not mind residing in one of the neighboring towns then you can get a much bigger house for the same price.

– As a first-time customer you might run into some mortgage servicers who provide bargains that seem too good to be true. You need to keep away from such mortgage providers because most of them are fraudulent.

Looking to take advantage of record low rates and wish to purchase or refinance your home?

Blue Home Loans

can help you find the

best first-time buyer mortgages 2013

.

Article Source:

ArticleRich.com