Increadibly low mortgage rates today move lower again as Treasury Yields declined again this past week. 10 year bond yields which have been under 2.00% for a while now along with 30 year current mortgage rates today being lower than 4.00%. 15 year conforming current mortgage rates today near historic lows at 3.14%. If you don’t know what mortgage loans are or how to get today’s mortgage rates at the lowest level from lenders you should read the information below.
Mortgages are loans home buyers get in order to afford to buy a home. Most people don’t have the hundreds of thousands of dollars to buy a home that’s where mortgages come into pay. When you get a mortgage you are borrowing money to buy the home and the lender is agreeing to lend you such a large some of money since the home is being used as collateral.
Current mortgage rates are not made up by lenders but tied to an index. There are several different indexes and depending on the lender set rates to one of the indexes. The most common index is a Treasury Security index. Other indices’ include the Cost of Funds Index and the London Interbank Offered Rate (LIBOR).
There are also different types of mortgages like fixed rate mortgages and adjustable rate mortgages. With fixed rate mortgages the interest rate stays the same for the entire life of the loan. When you apply for a loan you can lock-in the current mortgage rate since it takes a couple of months to close on a home loan.
Adjustable mortgage rates have a fixed period, usually 1 year, 3 year or 5 years depending on the mortgage type. After the initial period the mortgage rate changes usually every year. This can help you save money when mortgage rates move lower but cost you money when mortgage rates move higher.
The index and the margin on home loans are available from several types of lenders all you need to do is search for the best mortgage rates on home loans but at first, lower rates makes the ARM easier on your monthly payments than would be a fixed mortgages.
In some cases, you can borrow the money needed to pay these fees, but doing so will increase your loan amount and total costs for getting the loan. These costs are among the most common fees but this may not always be clear so you should ask each lender what their fees are.
When you compare mortgage rates you’ll see a rate and an annual percentage yield. If the APR is significantly higher than the initial mortgage rate, then it is likely that your rate and payments will be a lot higher when the mortgage loan adjusts in the future.
Mortgage rates are low so ask each mortgagee lender or broker for a list of today’s mortgage rates along with all fees involved on the loan.
Lenders base adjustable mortgage rates on a variety of indexes be sure to get information about mortgages from several lenders. Current rates are low but you can expect mortgage rates to increase in the future since the economy is getting better, unemployment is going lower and interest rates are sure to go higher in the coming years.
Once you have researched and you have an understanding of what each mortgage lender has to offer you should negotiate with them for the best possible mortgage rate, lowest mortgage rates and lowest closing costs.
Lenders offer different mortgage rates for the same loan terms to different people so you need to negotiate just like you would when you buy a car. Don’t be afraid to negotiate since you are paying for the mortgage loan. A .50% lower mortgage rate can be thousands of dollars in mortgage interest savings over 15 or 30 years.
To give you can example of where mortgage rates are right now The Money Store, Amerisave, Quicken Loans and Aimloan are all offer conforming 30 year mortgage rates under or just above 4.00%.
So you can see the difference between the lowest available mortgage rates price for a loan product and any higher mortgage rates can be at least 1.00% or higher. When comparing rates have the lender write down all the closing costs associated with the loan and what rate they can lock-in the mortgage at.
Ask if they will reduce one or more of its mortgage fees or maybe even give you a better mortgage rate when they originally quoted you. Once you are satisfied with the mortgage rate and mortgage terms you have negotiated, get the mortgage rate locked-in.
The lock-in should include the current mortgage rate that you have been quoted and agreed to and the number of mortgage points. You need to lock-in the mortgage rate since there are many steps when closing on a home loan and like I already said it can take 2 months or even 3 months.
When you lock-in you will probably pay a $200 to $300 fee to do so but the fee is small compared to getting a higher mortgage rate which will cost you tens of thousands of dollars in addition interest payments for a 30 year loan or 15 year loan.
Which type of home loan you get is up to you but good luck shopping for the lowest mortgage rates today!