Current Mortgage Rates

Saturday, November 22, 2008



If you are ready to start your first time home buying process, make sure you educate yourself on your options and don't just depend on the advice of others. For instance, first time home buyers are often entitled to special government funded mortgage programs that have low interest rates and low down payments. If you arm yourself with knowledge, you can explore all the options you have. If you want more instant gratification, online mortgage brokers are for you. These folks specialize in fast turnaround time with mortgage options and closings. It is recommended that you get a mortgage pre-approval before you go house hunting. Many sellers today demand a pre-approval letter before they will accept your offer. Pre-approval also gives a first time home buyer a realistic idea of what they can afford to buy.

In order to help you find the right mortgage, you may take a few initial steps:
  1. Seek to be Savvy. It is critical that home buyers understand the details of this significant transaction and are ready to take on the responsibility. Home buyers should learn about financing options relative to their unique situation and honestly assess their ability to manage finances.
  2. Evaluate Earnings. Beyond determining current income, it's important for home buyers to realistically evaluate future earning potential. If an anticipated increase in pay can accommodate possible higher monthly mortgage payments, then adjustable rate mortgages (ARMs) or fixed-period ARMs with lower initial interest rates may make sense.
  3. Factor in Fluctuations. Income fluctuations from commission-based jobs or self-employment should be taken into account, as well as supplemental income (e.g., alimony, quarterly dividends, etc.). Loans with payment option features may allow flexibility to pay the minimum required in leaner months and fully amortized payments or more during periods of increased income-as long as home buyers understand potential added costs from minimum payments resulting in deferred interest, rising interest rates, or re-amortizing of option ARM and interest-only loans.
  4. Estimate Equity. Home buyers can factor in how quickly they hope to build equity in their new home. Typically, loan balances decrease fastest with 15-year fixed-rate mortgages. In addition, conditions such as the rate of appreciation or depreciation in home values in home buyers' local market should be factored in the analysis.
The final key to finding a good first mortgage is to know the terms involved in the mortgage process. If you know what to look out for and the stuff that you really need, then you can find a mortgage that will go well with your needs and do not cost you too much money. All you have to do at this time is to arrive at the right house for your budget. Clearly the principal cost of the mortgage is the lump sum that you need to borrow and the interest on top of this.

On the other hand, there are many other charges that you have to think about while getting a mortgage. Arranging the mortgage would generally cost a few hundred pounds, as will legal fees. You also need to think of survey costs, land registry costs and stamp duties. There is also the amount of down payment you are going to make, all of which can add up to making the first process of receiving a mortgage expensive. Ensure that you have all of these funds in place before making a move. You should be monetarily stable before even thinking of getting a mortgage.




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Current Mortgage Rates*

Loan Type
National Average
30-yr. fixed6.00%
30-yr. fixed jumbo7.75%
15-yr. fixed5.75%
15-yr. fixed jumbo7.50%
7/1 ARM6.12%
5/1 ARM5.75%
3/1 ARM5.88%
1-yr. ARM6.62%
1-yr. LIBOR ARM6.00%
10/1 ARM7.75%
40-yr. fixed7.38%
*Mortgage Rates Updated: 11/21/2008