When you go online to look at mortgage rates, it can be confusing. The only way to get the best rate is to talk to real lenders.
First, decide on which loan program you’re going to compare. You need to decide between a fixed, an adjustable rate mortgage (ARM) and a hybrid. A fixed rate is fixed throughout the life of the loan, an ARM has an interest rate that can vary throughout the life of the loan and a hybrid is an ARM that is fixed for a predetermined period then adjusts into an ARM.
In the current rate environment, with interest rates near historical lows, most people select a fixed rate, but that depends on how long you want to stay in the home. If you think you’ll sell within five years, go for an adjustable rate. If you believe you’ll occupy your home for longer, you’ll be better off with a fixed rate loan.
You also need to select a loan term, or its amortization period. The most common fixed rate term is the 30-year fixed-rate mortgage. You can also select a 15, 20, and 25-year term. The shorter the term, the lower the interest rate, but the higher your monthly payments will be
First, decide on which loan program you’re going to compare. You need to decide between a fixed, an adjustable rate mortgage (ARM) and a hybrid. A fixed rate is fixed throughout the life of the loan, an ARM has an interest rate that can vary throughout the life of the loan and a hybrid is an ARM that is fixed for a predetermined period then adjusts into an ARM.
In the current rate environment, with interest rates near historical lows, most people select a fixed rate, but that depends on how long you want to stay in the home. If you think you’ll sell within five years, go for an adjustable rate. If you believe you’ll occupy your home for longer, you’ll be better off with a fixed rate loan.
You also need to select a loan term, or its amortization period. The most common fixed rate term is the 30-year fixed-rate mortgage. You can also select a 15, 20, and 25-year term. The shorter the term, the lower the interest rate, but the higher your monthly payments will be