Everything You Need to Know About Mortgages, Mortgage Rates and Applying for a Mortgage
Here at BanksBestRates, we’re dedicating ourselves to providing you with the latest news, rates, tips and advice on mortgage loans and home financing.
We offer mortgage rate trends and rates in real time, predictions from experts contributors about what will likely move rates in the near future and we why those changes matter.
BanksBestRates also provides new and first time buyers tips on making homeownership affordable and accessible so clear up any headaches you might encounter in the process.
When it comes time for you to buy a house, our calculators, rate and trend information will help you take advantage of the historic low terms lenders are currently offering.
While homebuyers may have considerably have fewer home loan options. We explain what they are and how they work.
Simply put, it pays to compare rates and and to everything in your power to raise your credit score before you even begin shopping.
A recent study of more than 8.5 million home loans held by lender Freddie Mac revealed some unexpected findings in rates across various geographic areas.
Unlike in years past, it’s become clear that raising your credit score is considerably more important than following the old saw about cutting down your debt-to-income ratio or laying out a larger down payment.
Record low mortgage rates across the board mean is still effected by where you live as many mortgages are closed by local banks and credit unions.
That means you’ll likely be more successful if you live in an area larger metro area which features stiffer competition among banks and credit unions.
The big payoff often comes in ratcheting up your credit score. There’s a huge disparity in rates offered to borrowers with a credit score below 650 as opposed to the rates offered to those with scores which top 800.
It seems a larger down payment has little affect on your rate. While it saves you money over the long haul, ramping up your down payment from 5 percent to 20 percent or higher is mitigated by the cost of private mortgage insurance.
Make sure you offload PMI as soon as possible as such insurance add thousands to the cost of borrowing in the long term. It’s simply an insurance policy which protects lenders and offers you no additional value.
Yet another piece of common wisdom that no longer holds true is that cutting back your debt-to-income ratio helps your rates from lenders. This DTI ratio is derived by factoring what percentage of your monthly income goes to pay expenses such as your mortgage cost, car and other loans and credit card commitments. A recent study found that DTI had very small impact on mortgage rates.
To get the best rate you should:
- Compare mortgage deals from no less than three lenders.
- Choose local lenders then shop online.
- Pump up your credit score. That’s easily the best way to maximize your bang for your buck