Buying a home is a large investment and it’s important to have a clear understanding of the cost of your mortgage loan. Home shoppers are often confused about the difference between APR (Annual Percentage Rate) and interest rates. When evaluating a mortgage loan, interest rates can tell a different story than APR. It’s important to note that neither is better or worse than the other. If you understand what each represents, then you can make an educated decision on your mortgage loan. (more…)
What is Rate Lock?
Mortgage rates can change daily, even hourly. When a mortgage rate is locked, it protects the borrower from interest rates rising between the time that the rate is locked and closing. However, because of changing rates and closing timelines, timing is everything when it comes to locking in a rate for a home mortgage.
A rate lock guarantees a borrower that they will receive a specific interest rate, at a specific price during a specific time for a home mortgage loan. This protects them from rising interest rates. (more…)
Mortgage interest rates are inherently variable. They fluctuate based on economic factors, both global and domestic, housing supply and demand for a particular area, and the credit score of the borrower.
There’s not much an individual borrower can do to stabilize the national economy. You can be smart about when and where you look for a home and make informed choices about what you can afford. But the major determining factor of mortgage interest rates that you have the most control over is credit score. (more…)
This election cycle has been one of the most turbulent in recent memory. There’s a lot of political attention from the national level all the way down to local elections.
But what does this mean for mortgage rates?
We’ll start by taking a look at the role of the Federal Reserve and its relationship with the president to fully understand their influence on mortgage rates. (more…)
With record low interest rates inspiring confidence in the real estate market, it may be an ideal time to consider refinancing your current mortgage loan if you wish to lower your interest rate and payment, shorten the term of your loan, get cash out for home improvements or consolidate higher interest debt. (more…)