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Looking for mortgage information? Read on and discover how to find and get the best mortgage possible for your home purchase.
Getting a Home Loan: Purchase
Choosing a mortgage for a home loan can be the biggest financial decision one can make, because a home purchase is probably the biggest investment you will make in your life. You will pay on this debt for a long time, so it is crucial that you find the best mortgage product to fit your needs. With such a large dollar debt, getting the best possible interest rate is extremely important. A seemingly small difference in interest rates can make a huge difference in the monthly payment you will make.
Mortgage Information: Steps to Getting the Best Home Mortgage
To get the best mortgage for your home loan needs, there are steps you need to take before you even begin to start the actual shopping for the loan. You need to make a solid budget, so you know how much you have available to spend. A basic rule that fewer and fewer people follow should be your guide: Have six months of savings to cover your monthly expenses in case there is an illness, a job loss, or a reduction in hours. The purchase of a home should be a happy event, but if not
prepared you can end up sinking your entire financial ship. Don't let your lender tell you what you can afford; their interests are not necessarily the same as yours. Too many people take on loans they cannot afford, after the lender assures them that they are well qualified they are for the loan.
When you seek a purchase loan mortgage, you will be examined in three main areas: the size of your down payment (an area where size definitely matters), your credit rating and your debt-to-income ratio. Take the time to know your credit rating. View copies of your credit report from the three main Credit Reporting Bureaus: Experian, Equifax, and TransUnion. Check the reports for errors. You don't want to be penalized for an incorrect reason. If there is an error on your report, it could damage your credit score and result in much higher interest rate and much higher fees for the loan.
There are TONS of different loan products these days, so it pays for you to know what different kinds of loans are available. To make the best choice of loan programs, there are some important factors for you to consider. How much can you afford to pay each month? Are you in a secure job and in a stable financial position so that you are confident you can see through the serious obligation you are about to enter. How long do you plan to stay in the house you are purchasing?
Most importantly, make sure that your mortgage, and your home loan, meets your financial and personal goals.
The Latest on Mortgage Rates
No surprise that mortgage rates fluctuate. If you are thinking about purchasing a home or maybe considering refinancing your current mortgage, then you want to be up to date on mortgage rates.
Mortgage rates August 17, 2023
According to Freddie Mac, the 30-year mortgage rate for the week of August 17, 2023 is 7.09%. This represents a 13 basis points increase from the previous week's rate.
Note: A basis point is equal to one-hundredth of one percent (0.01%). In numerical terms, if the mortgage rate changes by 20 basis points, it means the rate has changed by 0.20%.
According to Freddie Mac, the 15-year mortgage rate for August 17, 2023 is 6.46%. This is a 12 basis points increase from last week’s rates.
Understanding the impact of mortgage rates on your finances
When it comes to determining your monthly payment, mortgage rates are a key factor to consider. Here are the avergage interest rates (APR) for August 17, 2023 based on Zillow data for borrowers with a high credit score (680-740) in the United States:
- 30-year conventional loan is 7.34%
- 15-year conventional loan is 6.33%
Based on the provided rates, a $279,082 30-year mortgage would result in a monthly payment of $1,921. Alternatively, a 15-year mortgage would require a monthly payment of around $2,405.
Experience a smooth mortgage process: Shop around and get pre-approved today!
Shopping around for mortgages and getting pre-approved can make your home-buying or refinancing process easier. Ready to take the plunge? Check Out mortgage rates now for the best options available.