Lowest Interest Rates: Finding the Right Fit
You have undoubtedly read about the historical low mortgage interest rates during 2011 and 2012. 30-year FRM rates are close to 3.5% and 15-year FRM are under 3%.
We all want to get a good deal and find the lowest rates possible. However, the important thing to kind in mind is finding the best mortgage rate for your situation. Mortgage rates fluctuate and vary based on each borrower’s financial situation.
Mortgage loans are complex, so make sure that you compare mortgage rates and fees across similar products. Browsing for the lowest mortgage rates is easy, but comparing the rates can be difficult. In order to make it easier for you to find the lowest mortgage interest rates follow these steps:
- Compare rates, fees and products
- Look at Bills.com mortgage rate tables.
- Look online at some of the big mortgage lenders.
Compare Rates, Fees and Products
Before you browse for the lowest mortgage interest rates make sure that you are comparing similar products. Your loan options vary by: •
- Length of loan: Loans are offered for different periods, most commonly 15 and 30 year loans, although you can find loans for shorter periods and up to 40 years. •
- Payment structure: Most loans are equal payment loans, although there are lower rate mortgage loans with Adjustable Mortgage rates. ARMs come with a lower initial interest rate that can be readjusted at higher rates, based on annual and lifetime caps.
- Type of interest rate: 30-year FRM is much different that a 30-year 5/1 Adjustable rate mortgage. The ARM guarantees you a lower interest rate in the first period, but you carry the risk of a higher rate later on in the loan.
- Fees: Lender fees include origination points, discount points, and application fees. Many times lower rates come with higher fees. The longer you hold on to the loan, the less effect the upfront fees have on the overall cost of your loan.
- Mortgage Insurance: If your loan has a LTV ratio of over 80% then your lender will require that you take out mortgage insurance.
Bills.com Mortgage Rate Tables
Bills.com updated mortgage rate table offers you today’s mortgage rates for popular loan options. You can check out rates for a purchase home loan or a refinance mortgage loan.
The rate table is based on the lowest mortgage rates for borrowers with excellent credit and a moderate LTV ration. You can also get customized interest rates based on your credit score, property type, address, and LTV. The table also offers you a link to get mortgage quotes from Bills.com mortgage providers.
Look Online at Big Mortgage Lenders.
In order to find the lowest mortgage rate look at different websites from big lenders. The rates and fees are not generally the cheapest in the market, but you will gain another base of comparison. For example, Wells Fargo, Bank of America, and Quicken Loans all have mortgage rate tables on their website. Some lenders, such as Wells Fargo will send you an updated mortgage rate table to your email address every day. For reviews about those lenders and many more read the Bills.com article about mortgage companies reviews and ratings.
Lender’s mortgage rate tables show the lowest interest rate offered for different:
- types of loans (conventional and FHA loans)
- purpose of loan (purchase, refinance, home equity)
- periods (generally 15 and 30 years)
- Interest rates (fixed and variable).
- fees including lender fees, origination points, and discount points
Usually the mortgage rate tables assume that you have excellent credit a LTV ratio between 70-80%. Mortgage fees vary from lender to lender. Since mortgages are complex products, there are many assumptions made about fees, credit requirements, mortgage insurance requirements and escrow accounts. Big lenders like the Bank of America and Wells Fargo offer rates based on your zip code, and size of loan.
Shop Around: While browsing for the lowest interest rates available is helpful, in the bottom line, shop around. Learn about the mortgage market, how to qualify, and prepare yourself so you can get the lowest interest rate available.