Understanding
low interest loan mortgage rate calculator
Four Quick Tips on How to Lower Your Mortgage Interest Rate
Lowering your mortgage interest rate
Are you buying a new home? I don't care if it's a condo or a house, you will end up spending a lot of money. For most people it's going to be the single largest business deal of their life. To keep expenses in check it is extremely important to try and secure the very best mortgage rate possible. There is a number of things you can do to lower your mortgage rate, and right now is an excellent time because of the low interest rates.Tip number one - let lenders compete
Banks and mortgage brokers are in business to lend you money. If your credit record is in order and you have a steady paycheck coming in you are a prime candidate for a home loan, and banks will bid under each other to offer you a loan. The trick is to let them know you are an informed customer looking for the very best interest rate, and that you are also looking at what other banks have to offer. Don't just go to your regular bank, shop around!
Tip number two - get your interest rate offer in writing
Right, so you have approached several different banks to try and secure a low interest rate for your new home loan. As soon as one of these financial institutions have pre-screened you and are ready to offer you a loan, get them to put the interest rate they will extend to you in writing. With this interest rate locked in, you can now get back to all the other banks you are talking to and tell them: "If you can't match a 5.25% interest rate, we have nothing to talk about."
Tip number three - don't compare apples and pears
Remember that the interest rate you get is dependent on a number of things, but the main factor is if you are shooting for a fixed or adjustable rate mortgage (FRM or ARM, as they are called for short). This is in fact one of the first decisions you have to make about your mortgage. Say you decide you are looking for a 3/1 ARM, being fixed at an initial low rate for the first three years and adjusted each year after that. That means that is what you are going to use as a basis for comparison between different lenders. Don't get sidetracked by all the other adjustable mortgage rates or fixed rares on offer, they'll only get you mixed up.
Tip number four - go for the adjustable rate mortgage
First of all, everyone has different needs and no one mortgage type will fit all. Some people really appreciate the security of knowing the exact amount of their mortgage payments for years to come, and that means fixed rate is the best choice for them. With that out of the way, what we're looking to find here is the best way to lower the interest rate on your mortgage. And that definitely means adjustable rate. Adjustable rates mortgages are nearly always lower than fixed rates, just take a look at what your local bank will offer you. Over the life of your mortgage that adds up to serious money, and personally I've always hated paying too much!
About the Author
Gus Benson runs http://www.mortgage-content.com, a website dedicated to information on mortgages, home loans and interest rates.
Click to visit his site: http://www.mortgage-content.com
More Useful Resource and Updates on low interest loan mortgage rate calculator
- Countrywide Settles State Consumer Fraud Cases for $8.4 Billion (Bloomberg)
Oct. 6 (Bloomberg) -- Countrywide Financial Corp. , the home mortgage lender, will offer interest rate and loan principal reductions plus other distressed borrower relief valued at $8.4 billion to settle consumer fraud complaints from 11 states.
- FHA: Understaffed, underfunded and overwhelmed? (Los Angeles Times)
-- In the current credit squeeze, if you have less than a 20% down payment, there's pretty much only one major source of mortgage financing available: FHA, the Depression-era home loan insurance agency that still offers 3% down, 30-year fixed-rate mortgages, even on jumbo loans.
- Countrywide settles suit, offers loan relief (The Charlotte Observer)
Countrywide Financial has agreed to the largest program ever to modify home loans, as part of a settlement with officials in 11 states, just days after the federal government adopted a giant financial rescue package without any relief for distressed homeowners. Countrywide, the nation's largest lender and loan servicer, recently acquired by Bank of America, had been sued by the states over what ...
- Lender settles mortgage lawsuit (San Diego Union-Tribune)
Countrywide Financial has agreed to the largest program ever to modify home loans as part of a settlement with officials in 11 states, including California. Countrywide, the nation's largest lender and loan servicer that was recently acquired by Bank of America, had been sued by the states over what they said were predatory lending practices.
- Countrywide settles suit, offers direct loan relief (The Charlotte Observer)
Countrywide Financial has agreed to the largest program ever to modify home loans, as part of a settlement with officials in North Carolina and 10 other states, just days after the federal government adopted a giant financial rescue package without any relief for distressed homeowners. Countrywide, the nation's largest lender and loan servicer, recently acquired by Bank of America, had been sued ...
- RBA tipped to cut rate by 0.50pc (Adelaide Now)
HOME borrowers are tipped to see the biggest rate cut in seven years tomorrow as global financial market turmoil puts pressure on bank funding costs.
- Countrywide mortgage pact may be worth $3.5 billion to California loan holders (Los Angeles Times)
Bank of America Corp. agrees to nation's largest mortgage-workout program to settle charges of lending abuse. An estimated 125,000 Californians who are struggling with risky mortgages from Countrywide Financial Corp. may get their loans modified and payments reduced under a program to be announced today.
| 
