Although
your home is the biggest
purchase you ever make. However, the mortgage
on that house is the biggest purchase you WILL
make. Over the length of the mortgage
term, you will probably pay more on the interest
than than you paid for the house. Saving a few fractions
of a
point
on your interest rate can save you a tremendous
amount of money on your mortgage.
Mortgage rates and terms aren't fixed and mortgage interest rates have fluctuated
greatly over the years. As a general rule, when the economy is heating up and
stock prices are rising, interest rates tend to follow upward and vice-versa.
Today, rates are much lower than they were in the mid-1980's and 90's. Most financial
experts are predicting a rise in interest rates within the next year or two.
Rates change on a daily basis. You can check Current Mortgage Rates.
Mortgage rates and terms aren't
fixed and mortgage interest rates have fluctuated
greatly over the years. As a general rule, when the
economy is heating up and stock prices are rising,
interest rates tend to follow upward and vice-versa.
Today, rates are much lower than they were in the
mid-1980's and 90's. Most financial experts are predicting
a rise in interest rates within the next year or
two.
Research Rates
Begin by checking out current interest rates and
rate movements when shopping for a mortgage. Mortgage
rates generally rise and fall along with Wall Street
securities and generally reflect the overall direction
of interest rates. By keeping an eye on mortgage
market trends and key economic indicators, a borrower
has a better chance of obtaining interest rate savings.
•
Search Todays Rates
•
30 Day Rate Trends
What is APR?
A tool used to compare loans across different lenders
is the Annual Percentage Rate (APR). The Federal
Truth in Lending law requires mortgage companies
to disclose the APR when they advertise a rate.
It is designed to represent the true cost of
the loan to the borrower, expressed in the form
of a yearly rate. The purpose is to prevent lenders
from hiding fees and upfront costs behind low
advertised interest rates.
Meeting with a Lender
You may prefer to meet with the mortgage company
before house hunting to determine in advance
how much you can afford and the mortgage amount
for which you can qualify. This step is called
pre-qualification and can save you time and trouble
by making certain you are looking in the correct
price range.
Lock in Your Rate
A lock in, also called a rate lock or rate commitment,
is a lender's promise to hold a certain interest
rate and a certain number of points for you,
usually for a specified period of time, while
your loan application is processed. Depending
upon the lender, you may be able to lock in the
interest rate and number of points that you will
be charged when you file your application, during
processing of the loan, when the loan is approved,
or later.
