What is The Best Interest Rate For a Mortgage?
Posted by @TopMortgageRate
Mortgage rates haven't moved much this year, and the good news is they've been stuck at historically low levels. But the bad news is that may be about to change.
Both home prices and mortgage rates are expected to move higher as we head through the fall, and that makes shopping for the right mortgage all the more critical. While various groups report national mortgage rate averages each week, the rates you get can vary dramatically from that average, depending on what product you choose and how you shop. So how do you get the best rate? We asked some of the top mortgage professionals across the nation for their top tips:
Craig Strent, CEO of Maryland-based Apex Home Loans:
"Don't overpay for your mortgage. One of the biggest mistakes home buyers make is to take a 30-year, fixed-rate mortgage when they don't need it."
The 30-year fixed is the most expensive of all mortgage products because the rate is the highest and you're paying for the longest time. Choose a product that matches how long you expect to be in your home. If it's just five years or less, then a 5/1 adjustable rate mortgage (ARM) which is fixed for five years will be a much cheaper option. If you're conservative, try a 7/1 or 10/1 ARM. The rates on all of these are lower than the 30-year fixed and can save you thousands of dollars over the life of the loan.