When considering how to pick a great mortgage rate, the best advice from bankers and real estate professionals is to choose a 30-year fixed rate mortgage because it is stable, flexible and generally affordable. Government officials at Freddie Mac say that most American homebuyers are first asking how to choose a mortgage during these uncertain economic times. In fact, the Freddie Mac answer for wise homebuyers on its website is to always pick a “mortgage rate you can afford.”
Another aspect of choosing a mortgage today is linked to paying off this home loan before maturity or with a 15-year-loan to save lots of money. For instance, a 30-year fixed mortgage more than doubles the total interest paid than with a 15-year loan. Thus, paying off a mortgage early or with a 15 or 20-year-loan can save homebuyers more than a $100,000, on average, say estate experts.
Choosing a low interest mortgage
The view that one’s home is a family’s biggest financial asset is true. In turn, a mortgage rate and monthly payments must fit the homeowner’s lifestyle before it makes sense.
For instance, the best 30-year fixed rates mortgages include:
– A basic home loan with an interest rate around 5%
– A slow but steady means to repay the interest cost before the principal
– The option to shorten the loam term with higher monthly payments to reduce interest over the life of the mortgage.
In general, the view is to proceed with caution when paying back this major obligation because its impacts your family and quality of life in a very real and direct way.
Mortgage advice from the experts
While choosing a good interest rate is all-important to any decision about a mortgage, the other big issue is selecting a professional to help you secure and manage the loan. In fact, there are many top real estate experts online today who can connect you with mortgage brokers and bankers. Also, most credit unions and banks have mortgage professionals on staff that is trustworthy and knowledgeable about such things as the difference between a lender and broker in the world of mortgages today.
Finding the best lender and rate
Home loan lenders specialize in helping everyday people find the mortgage funds they need to make their “American Dream” come true. For instance, a happy new homebuyer commented online about her banker serving as a mortgage broker and finding her the right match for purchasing a house with a great low mortgage interest rate. In turn, the banker said it is always vital that a homeowner be happy with the mortgage interest rate that they settle on.
Overall, it is best to first check mortgage rates online before moving on to choose a mortgage lender, say experts commenting online. Also, the goal is to find the best lender that will not only qualify the buyer for their dream home, but also help them with a financial plan to sort out their monthly mortgage payments and keep their credit score in good order.