Business

Seek help to enjoy interest rates for your home loan

Seek help to enjoy interest rates for your home loan

“The affordability of a home is based on the monthly payment, which is driven by the interest rate and the amount that you borrow,” says Dustin A. Wells, senior vice president and division manager with IBC Mortgage in Austin, Texas.

Seek help to enjoy interest rates for your home loan

Talk with any loan professional, who have better idea regarding local market of housing to let you know with best interest rates of home loan. If you interested in owning a house, you are lucky because you can mortgage rates at reasonable level which range from almost 3% to 4%. Interest rate is basically the percentage amount that you give to lender to get the borrowed money for owning a particular house, so low interest rate means great affordability for house.

Dustin A, a division manager and vice president with mortgage of IBC in Austin says, “The affordability of a home is based on the monthly payment, which is driven by the interest rate and the amount that you borrow,”

Ways to determine interest rate:

Even with such reasonable rates certain factors can raise or lower your interest rate which in turn effects how much home cost you can afford.

Seek help to enjoy interest rates for your home loan

Although interest rates remain reasonable but there are some factors which becomes cause to change the interest rate either positive or negative shift and affect the power for owning the home. One of among most major factors that can create an impact is credit scores. If you are suffering from negative credit scores like missed or late payment, than it means increase in interest rate, even if you are managing your finance well. Second factor is “loan to value ratio”. Here, percentage regarding your value of property is find out, which is going to be mortgaged. Loans types also affect interest rates.

Well says, “As you’re shopping around and trying to find the best or most aggressive rate, you’ll see the rates change depending on the financing vehicle you’re choosing,” Government provides guarantee by sharing risk with the lender. Wells said that rates of conventional loans are moved by your credit scores. Fixed loan rates are prevailing more and more aggressive as compared with ARM (Adjustable loan rates).

“What we’ve seen in the last three to four years has really been a transition to fixed-rate mortgages,” said by Wells. “You don’t see the advantage now with the ARM loans that you saw before the economic downtown.”

“In the fine print, it’s going to indicate that you’ll have to pay points — an out-of-pocket cost associated with obtaining that rate — or it may advertise a rate for a product such as a 1-year ARM or a 10-year term,” wells further says. Searching for some information regarding home loan is good but total dependence on that is not so good.

“I think both of those are fine, but they’re not a replacement for sitting down one-on-one with a loan professional,” he argue by adding that having an interaction with someone who have better idea among housing market locally is very important.

Wells said that ask several questions with loan professional like loan process, duration required to complete the loan process, policy for locking interest rate, handling of closing , attending to closing, cost required for process and loan closing etc.

Maintaining good relation with that professional is good for various situations especially for locking rate and for the duration to lack.

Well says, “Part of their job is to be monitoring and managing that process for you. If they see the market rates get very aggressive and improve, they should be proactively contacting you that it would be a good time to lock in your rate,”

Comments

View Comments (1)

1 Comment

  1. Number@yahoo.com'

    loanemu.com

    June 7, 2015 at 9:21 am

    The article has been most helpful. It’s very informative and the writer is very knowledgeable in this area and able to communicate the information effectively. It’s nice to read a good article on this subject.

You must be logged in to post a comment Login

Leave a Reply

Business
@iMZahidIqbal @iMZahidIqbal

Writing about developing World technologies and entrepreneurship. Associate at Microsoft BizSpark & International Development Innovation Network. Follow me on Twitter and Facebook.

More in Business

Ethereum

What is Ethereum and how does it contrast from bitcoin?

Staff ReporterSeptember 4, 2017
Privatisation

Advantages and problems of Privatisation

Liza NicholeJuly 25, 2017
Uber acqui-hires social app studio Swipe Labs

Uber acqui-hires social app studio Swipe Labs

Staff ReporterJuly 24, 2017
Data Center in China

Apple’s First Data Center in China to Comply With Law

Staff ReporterJuly 14, 2017
How Apple is creating more wealth for Samsung

How Apple is creating more wealth for Samsung

Daisy FlorenceJuly 12, 2017
Demand of Data Scientists

Demand of Data Scientists Will increase 28% By 2020, IBM Predicts

Sarah AliceJuly 11, 2017
U.S. jobs market

Economy added 222K jobs in June, more than expectations

Sarah AliceJuly 10, 2017
accepting Bitcoin

New York pre-school accepting Bitcoin

Sarah AliceJuly 7, 2017
How to Use Bitcoin

How to Use Bitcoin? – A “Quick Start” Guide

Muhammad Zahid IqbalJuly 4, 2017

Copyright © 2014 Khaleej Mag