There are a lot of different aspects to consider in a home loan from any lender. One of the most important factors that will impact the total cost of the loan for the home buyer will be the interest rate on the loan.
Taking the time to compare home mortgage rates and loan features from different lenders and even between programs will be important. Comparing home mortgage rates as well as the other aspects of the loan will help you make an informed decision as to the best option for your current financial situation.
Down Payment Drama
Many home buyers—particularly those buying a home for the first time—assume that the down payment is the most critical part of the purchase. They might stress out about being able to afford the 20 or 30 percent down payment that they’ve been taught to anticipate. The fact of the matter is, though, you can find home loans that require much lower down payments, or even no down payment at all!
For example, if the individual buying the home is a veteran or an active-duty service member or a qualifying member of the Reserves or National Guard, the VA (Department of Veterans Affairs) offers a loan that has a zero-down payment option.
Additionally, the FHA or Federal Housing Administration provides loans with very limited amounts down, often as low as 3.5%. This can also be offered even if the buyer has a lower credit score. All the FHA requires is a credit score of 580, but it is worth the time to loan rates if you do some work on your credit score and then apply.
Remember, you won’t just compare home mortgage rates at the time of the initial purchase. Most home buyers will want to compare mortgage rates over time, allowing them to refinance and save money or to tap into the equity built up in the home if required.
Refinancing from a 30-year fixed to a 15-year fixed is often a good idea if mortgage rates drop significantly. At this point, homeowners can use mortgage calculators to see when it is financially advisable to complete the refinancing process.
At Guaranteed Rate, we encourage our customers to compare home mortgage rates between our services and other lenders. To find out more about our competitive mortgage solutions, see us at website