What are the best mortgage programs and rates and how do you know what is the best?
I have talked and gone over different programs and rates countless times now, and find the programs are so many and complicated, I don’t know which way to go. Please tell me if there is an official office or business that directs persons refinancing, etc with the right information and what to look for when applying. I have stopped doing anything on my home because of the conflicting offers and interest rates.
Example: one lender offered 5.75% fixed rate-interest only for 5-7-or 10 years, with a payment of ,245.00 per month. Another lender said, that’s not possible, and offered the same deal, except 6.75 fixed rate. He said, better question how much of your money you will be paying to the lender over the term you choose, etc. They either will charge points, or there is more to the loan than they are stating.
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Tags: 10 years, countless times, fixed rate, fixed rate private student loan consolidation, home equity loan lowest rate, interest rates, money, rate interest
Missy….A website I have found very useful for your situation is bankrate.com. Regardless of whether you use bankrate.com, I suggest obtaining what is called a "excellent faith estimate" from several mortgage brokers. To help you compare apples to apples I suggest you first determine the number of points you wish to pay on the loan (the higher the points or upfront fees…the lower the interest rate…..the lower the points…the higher the interest rate.) In any event, have all mortgage brokers or banks you which to obtain quotes from base their excellent faith estimate on zero points, one point or two points. One vital suggestion is to obtain all the quotes on the same business day because quoted rates change ever single day. Excellent luck with the process.
Here’s the deal. By far the best mortgages to get are 15 or 30 year fixed rate mortgages. Period.
1. They are the simplest, most traditional mortgage types, and therefore they are the cheapest to get (lower fees, closing costs than other mortgages). This is why lenders often suggest ARMs and other mortgage types–because they earn higher fees on them.
2. Fixed rate mortgages are also the best for building equity. If you get an ARM or interest only mortgage, you will not be building as much equity as quickly because you wil be paying more to interest than to principal.
3. If you get an ARM or interest only loan, you will have to spend more to refinance again in a few years when the interest rate jumps up. Which it probably will, because rates are still near all time lows.
3. A fifteen yr fixed loan is best because you pay far less in interest over the life of the loan, plus you pay it off 15 yrs sooner. But the monthly payments are higher, so many people tend to go with the 30 yr loan to get lower monthly pmts.
Go with a 30 yr fixed! You will have exactly the same payment every month for 30 yrs (or until you sell the house) and you will be locking in an interest rate while they’re still near all time lows! If rates go up, you win because you’re locked in! If rates go down you can easily refinance and get a lower rate. But if you go with an ARM or interest only loan and rates go up, you will have to pay the higher rate; your rate will adjust higher and higher. Even if you refinance it’ll be at the higher rate.
Only a fool would get an interest-only loan these days (unless you plot on being out of the house in 1-2 years time). If you haven’t been in America very long, you probably don’t know about the rise in foreclosed properties over the past two years, which is partially due to shady mortgage brokers that participate in sub-prime lending and the various mortgage products they have to offer to convince you to buy more house than what you can afford. If you want equity in your home, and most importantly a sense of security, go with a fixed rate 15/30 year mortgage!