Archive for November 2015

Winning The Lowest Mortgage Rate For Your Home

There is definitely a multitude of factors affecting mortgage rates, which include some aspects like property type, loan program and property occupancy. While this is a clear fact to many people, there are other factors that have the most influence when you want to secure new mortgage rates irrespective of the economic conditions. By looking at these factors, you will be able to know how you can win the lowest mortgage rates for your home and be able to save something in the long run.

Consumer profile

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The risk of the loan bears a direct relationship with its cost. Lenders generally carry all the risk since they are they are the ones who create the loans. That means they make charges depending on the market conditions. Consumer profile is one of the essential factors that mortgage lenders consider before giving out loans. The consumer profile covers such things as loan type, debt ratio, occupancy, credit score and property type. Lenders take their time to look into a consumer profile to ensure they are making the right choice when giving out the loan. Therefore, your profile needs to be on point if you want to get the lowest mortgage rate.

Property profile

Mortgage lenders also consider the property profile before giving out loans. An assessment has to be carried out to determine if the property is a single-family residence, a townhome or a condominium. All these factors affect pricing. Properties such as multi-family homes and condominium have a different pricing adjustment, which makes the loan more costly. Therefore, the property type can easily help you do the math regarding the kind of mortgage rates you are likely to get from lenders. Seemingly, single-family homes get lower rates as compared to condominium and multi-family homes.

Economic situation

Economic conditions change on a daily basis. That is why lenders also consider the economic situation alongside property and consumer profile. Unemployment report is usually among the top factors that drives mortgage rates. The mortgage rates may be higher or lower depending on the unemployment report. If the report is better, the rates may hold or rise significantly. However, if the reportis not good, lower rates are likely to apply. Since mortgage rates vary depending on the economic situation, you need to pay attention to economic conditions before making any choice.

Loan type

Rates also apply according to the loan type. In that case, if a customer does not have the ability to increase down payment as well as the loan-to-value, he can always consider the idea of improving his credit score. Financial reports indicate that borrowers mostly benefit from non-governmental loans when they put in efforts to improve their credit scores. This is because most conventional loan programs make pricing based on loan-to-value and credit scores.

You can get low mortgage rates by considering these factors before applying for a mortgage. The idea of getting low mortgage rates is about making it possible to save some money throughout the mortgage term so you can achieve the dream of owning a nice home.