Tuesday, 20 August 2013

Cheap Fixed Rate Mortgages, Guide For Qualifying Fixed Rate Mortgages

Finding cheap fixed rate mortgages can be frustrating for those who do not know exactly what they need to do. The key to finding the best of any deal is in the research—this is something we cannot stress enough. If you fail to conduct sufficient research, we cannot guarantee you will find the best possible mortgage rate and repayment term.

Qualifying for a Low Interest Rate Mortgage

Are you looking for a cheap fixed rate mortgage? You probably want to know how to qualify for the lowest rate because there is no “one size fits all” when it comes to the interest rate on mortgages. In fact, two homeowners can have identical credit scores and pay different interest rates because there are other variations that come into the pictures. Real-Estate-Yogi.com explains there are many factors that determine an individual interest rate including the following:
  • Credit score
  • Financial stability
  • Employment stability
  • Down payment
  • Price of the house
At Real-Estate-Yogi we can help you choose the mortgage that offers the best all around benefits. If you would like to speak to one of our experts fill out the form that appears on the website, and someone will be in touch with you as soon as possible.

Finding the Cheapest Rates

Finding the cheapest fixed rate mortgages can sometimes be difficult, especially if you are one of the unfortunate ones who has a lower than average credit score. I remember when I bought my house all the frustration it created. Afterward I wondered why my neighbor had a lower interest rate; it turned out even though he had the same credit score as I did it was a different lender. I had no idea at that time that the rates were not standardized. I just figured if you had the same credit score, you would pay the same interest rate. There isn't a big difference, but it’s enough to make a difference of a few dollars in the payments. This should not stop anyone from buying a home because if you don’t like what one mortgage company offers, you have the option to apply somewhere else. Of course, sometimes there aren't a lot of choices; I have an FHA loan, so I could only apply with those lenders who handled FHA loans. My sister had the same problem because they went through the VA.

Applying for the Cheapest Mortgage Rates

Finding the cheapest fixed rate mortgage can be problematic for those who don’t have the perfect credit score. At Real Estate Yogi we try to help everyone get into the home of their dreams at the cheapest possible rate. Sometimes the rate we find isn't always what the homeowner would like to see, but it’s the best rate available for that particular credit score. This surprised me when I received the commitment on my home which is why I had to question it. It’s amazing how many possibilities there are; lenders have a range of interest rates with the lowest rate reserved for only the best customers. Keep your credit score on the high side and you will have more choices.

Everyone wants to find the cheapest mortgage rates, but unfortunately those who don’t have the best credit may not see the rates they would like to see. www.real-estate-yogi.com has a great deal of information that is quite helpful for those looking for a cheap interest rate. In order to speak to one of the experts, call 1-800-987-1397 any time you have a minute to spare.

Sunday, 4 August 2013

Decision Time: Adjustable Rate Mortgages Verse Fixed Rate Mortgages

Unless money is of no concern to you when buying a home, choosing between adjustable rate mortgages and one with fixed rates is a very serious decision. Besides the fact that buying a home in general is a big financial decision, there are risks associated with both. Some of those risks are inherited early on in home ownership while others won’t rear their ugly head till later in the mortgage process. It is also a decision which requires forethought deep into the later years of your life. That can be a very ambiguous and difficult decision to make. Here are some reasons why you might choose type of mortgage over the other.
  • Fixed rate mortgages have a set month to month payment plan that will never change for the life of the loan. The advantage is that the borrower is protected from a sudden and potentially unaffordable increase in monthly mortgage payments if the interest rates go up.
  • The disadvantage of fixed rate mortgages is that the initial down payment can be up to 35% of the principal value of the home. This can make many homes unaffordable when interest rates are high.
  • Adjustable rate mortgages have the advantage of a low down payment and cheap month to month payments during the first few years of the loan.
  • The disadvantage and risk is that after a few years the month to month payments will adjust upwards reflecting high interest rates making the loan no longer affordable.
Let’s Start With A Fixed Rate Mortgage Plan

When the housing market is good and interest rates are low, finding the lowest fixed rate mortgage available is good advice. It is also a solid investment if you plan on keeping the home for a long time and eventually paying off the mortgage in its entirety. When the housing market was stable and people were staying in the same neighborhood for many years, a fixed rate mortgage was desirable because of its stability. You could count on the value of your home staying the same or increasing in value over time. However in areas where property values fluctuate, if you have a fixed rate mortgage and the value of your house decreases, you might be stuck paying a mortgage that is more expensive than the value of your home.

Tell Me About Adjustable Rate Mortgages

People often choose adjustable rate mortgages if they don’t believe they will eventually pay off the entire loan. Sometimes people look at an adjustable rate mortgage as a chance to flip a home, save some money over a few years and maybe find a better mortgage later on when times are better. You won’t have to spend as much money initially to get a home, you can even accomplish bad credit mortgage refinancing, and the first few years of home ownership will be light on your pockets. The monthly payments will be low. However the great risk is that after 3, 5, or 7 years the monthly payments increase to a price margin you can no longer afford and you have to default on a loan ruining you credit. Many people assume they can switch from an adjustable rate to a fixed rate when this happens, but it is not very easy.

Learn more about fixed rate mortgage refinance as well as the benefits of adjustable mortgage rates at www.real-estate-yogi.com. They are experts in the industry and can help you make the right decision. Call them for a free consultation any time at 1-800-987-1397