Home mortgage interest rates hit record lows in 2004 and have remained at record lows as we go through 2005. It is possible today to get a thirty-year fixed rate home mortgage loan for under five percent, and an adjustable rate mortgage can be found for under four percent if you look hard enough!
However, record low mortgage rates do not mean that you should take the first mortgage offer made to you, even if it sounds low. On the contrary, it means that shopping around for the best mortgage possible may be even more beneficial then during a high market period.
If you solicit mortgage rate quotes from enough lenders and pay attention to economic news, you might be able to secure a home mortgage loan at an interest rate that you will not see offered again in your lifetime.
Solicit Several Mortgage Rate Quotes
In order to get the best deal on anything in America, it is important to shop around. Securing a home mortgage loan or a and 2nd mortgage is no exception to the rule. If you are the type of consumer who likes to walk into the first store that you see and buy what you need without comparing your options, then you might also be inclined to accept the first home mortgage loan offered to you.
Doing so would be a big mistake. Unless you have a long term established relationship with a lender who considers you one of his best customers and is willing to loan money to you at the prime interest rate, then in order to get the best possible home mortgage loan you will need to "shop" and compare lenders.
Because the home mortgage rate is so volatile right now, it often changes during the course of one business day. Therefore, it is best to solicit all of your mortgage rate quotes on the same day. Compare offers from various lenders, and request a rate lock from the lender offering the best choice.
Why the Home Mortgage Interest Rate Matters So Much
The interest rate that you secure your home mortgage loan at will have a big impact on the total amount that you end up paying for your home by the time the loan is paid in full.
To illustrate this, let's say that you buy a home for $150,000 using a 30 year fixed mortgage with a 6 percent interest rate. By the time the home mortgage is paid in full it will have ended up costing you almost three times the original cost of the home. Using the same home and the same 30 year fixed mortgage, but lowering the interest rate by only one percentage point, down to a 5 percent interest rate, will save you approximately $100,000 over the life of the home mortgage loan.
Clearly, getting the best possible interest rate on your home mortgage loan is one of the most important economic decisions you will face. Since mortgage rates are at an all time loan, now is a great time to gather some home mortgage rate quotes!
Copyright 2005 Tracy Price
Tracy Price is a staff writer at http://www.2nd-mortgage-tips.com Providing free educational information on mortgages, 2nd mortgages, home refinancing, etc...
Applying for a subprime mortgage loan online can seem intimidating... Read More
More and more of use are signing up for limited... Read More
The home equity loan has become quite popular in the... Read More
This post is a must read for anyone considering purchasing... Read More
If you have a mortgage on your property, whether it's... Read More
Figures from the Council of Mortgage Lenders show that in... Read More
Whether you are looking to purchase your first home, sell... Read More
A Self-Certification mortgage is a mortgage designed for people who... Read More
Refinancing your home mortgage can come with some great perks.... Read More
1. Save on your income tax.Yes, something good can come... Read More
Before you go looking at houses, you'll need to find... Read More
If you happen to be shopping around for a mortgage,... Read More
Here is a useful guide to the different types of... Read More
Here are our Top 10 most important things to consider... Read More
Frequent Asking Questions:What are Points? A. There are several types... Read More
You might be wanting to look into bad credit home... Read More
This article will help you understand the differences between a... Read More
In previous decades, when a borrower missed a payment on... Read More
In decades past, most people who were interested in obtaining... Read More
Online homeowner loans have been growing in popularity in recent... Read More
Simply stated, a reverse mortgage is a loan that enables... Read More
Refinancing and Car Finance - Is it Worth It?No doubt... Read More
If you have home improvements that you'd like to see... Read More
Buying a house is a very important step in your... Read More
Finding the best remortgage deals isn't always easy, especially with... Read More
Add the term 'online' and it will open for you... Read More
A Home equity loan has become an easy way to... Read More
Doesn't Residential mortgage give the impression that they are a... Read More
With the recent sharp increase in property values your current... Read More
What is a Fixed-To-Adjustable Rate Mortgage?This type of mortgage offers... Read More
Buying a Home and committing to a Mortgage can be... Read More
When applying for a mortgage loan when you have a... Read More
Have you decided to refinance your home or apply for... Read More
You're selling your home and are looking to relocate to... Read More
When you're looking for a mortgage, whether it's a first... Read More
Having poor credit alone cannot hold you back from getting... Read More
Having a pre-approved mortgage will give you the confidence of... Read More
If you're actively looking for cheap homeowner loans, there are... Read More
If you are transferring to the Kings Bay Georgia Naval... Read More
It's very important, and in my opinion, mandatory to have... Read More
Here is a useful flexible mortgage guide. Flexible mortgages are... Read More
Recent news has made much of parents stretching their finances... Read More
According to the Council of Mortgage Lenders, first-time buyers are... Read More
It can happen to anyone, the roof is leaking, the... Read More
Searching for a mortgage can sometimes be a hassle. Where... Read More
Refinancing your mortgage is one way to rebuild your credit,... Read More
Presently council tenants are able to purchase their rented property... Read More
Mortgages are easy as long as you understand them well.... Read More
Interest rates on home mortgages are often quoted with and... Read More
This is a guide on how to get the best... Read More
Many people choose to take out home improvement loans so... Read More
If you buy new windows, you'll not only pay for... Read More
Seldom in ones life do we get a chance to... Read More
Using a home equity loan to get out of debt... Read More
The information in your credit history helps mortgage lenders decide... Read More
Although any loan used for buying real estate is strictly... Read More
A Home equity loan has become an easy way to... Read More
A mortgage is a loan, usually from a bank, finance... Read More
Private lenders, banks, and mortgage companies are all setting up... Read More
The booming real estate market has allowed many Americans to... Read More
While trying to find the lowest rates, many homeowners fail... Read More
A pre-approved mortgage is a must in a competitive housing... Read More
If you've got a wallet full of credit cards, and... Read More
There was a time that seems like decades ago when... Read More
In today's overheated housing market, lenders are making it easier... Read More
Obtaining a home loan is arguably the most expensive transaction... Read More
Mortgage Refinance |