Once you have the home buying plan in place, you’ll need to spend some time in understanding mortgage rates, discount points and annual percentage rate (APR), among other things. Mortgage interest rates may vary widely depending on a number of factors and your choices can help you get the lowest rate possible.
Loans for low-income homebuyers
Depending on your personal situation, there may be a number of additional ways to lower your interest rate. If your state or local government considers you to be a low-income homebuyer, you may be eligible for special low-rate loan programs. A Chase Loan Officer can assist you with finding the right loan for your situation.
Fixed vs. adjustable rate
A fixed rate mortgage offers a fixed interest rate for the life of the mortgage and your monthly payments remain the same. An adjustable rate mortgage (ARM) offers a rate that is tied to a market index. Here’s what you can expect with an adjustable rate mortgage:
Which is right for you?
An important question to ask is “How long do I plan to own this house?”
Keeping an eye on interest rates
Depending on current interest rate conditions, the differences in the monthly payment between a fixed rate loan and an adjustable rate loan could be very small or quite large. Because of the many different variables involved, using an online calculator to determine which type of loan may be right for you can be a smart approach. In addition, your JM GROUP Loan Officer can help you consider all of your options.
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