MORTGAGE INTEREST RATES
Current mortgage rates are at or near record lows and have dropped as low as 2.8% for a 30-year fixed loan. A mortgage interest rate is the annual rate of interest charged on a mortgage loan. There are a lot of factors that will affect the interest percentage offered to you, such as the mortgage bond market, your credit score, and your selected lender. With historically low rates, grabbing a great deal is virtually assured. If you have been eyeing the market looking to lock in a low rate, now would be the time.
When choosing the right mortgage program, it is vital to think about your future homeownership goals. If you are planning to sell the house in a few years, choosing an adjustable or balloon loan may make more sense. However, if you plan to keep the home for an extended period, a fixed loan may be more suitable. A knowledgeable mortgage lender can evaluate your financial situation and recommend the most suitable mortgage program.
Home buying can be intimidating, but speaking with an experienced mortgage professional is an excellent way to assess your financial home-buying capacities.
- Credit Score – Ensure that your score is robust and your report is error-free.
- Type of Loan – Have an idea of the type of mortgage that you want.
- Compare Lenders – Thoroughly research reputable mortgage lenders.
- Get Pre-Approved – Get a pre-approval from one or more lenders so that you will know your home purchasing power. In today’s competitive housing market, having pre-approval for a mortgage is a MUST HAVE!
- Get Your Paperwork Ready – Assemble all of the necessary paperwork that you will need to complete your mortgage application.
- Find a Home – Most people begin their research online. The help of a professional Realtor® makes this process decidedly easier.
ASSESS YOUR DEBT
As you are preparing to complete your application, it is important to consider your DTI (debt to income ratio). The lower your DTI, the less risky you are to lenders.
For current homeowners not in the market to move, now might be the perfect time to take advantage of the current interest rates and consider refinancing your home at a lower rate. At Mike Thomas Associates, we have our finger on the pulse of the local market. Call us to begin your Northeast Indiana home search today!