Understanding Interest Rates

If you are in the market for a new home, or it is time to refinance your mortgage, there is no doubt you have been looking at the current interest rates. But with all the financial jargon and the multitude of lenders and mortgages available, understanding your options can really be confusing. Here are some simple facts about interest rates and how they affect your bottom line.

Do Your Research

As with any major decision, knowing the facts about the housing and financial markets before making any major decision is of vital importance to protecting your investment. Review our "Real-Time" rates daily here on our blog. In general, fixed rates will be higher, but as they don't fluctuate over the term of your loan they may be a better choice for those who need the stability of fixed payments. Also when comparing interest rates, be sure you are comparing the APR, or Annual Interest Rate, to ensure that your comparisons are on equal ground.

Also keep yourself informed on some of the riskier options that may be out there. ARMs, interest-only mortgages, no-doc loans, and 100 percent mortgages are some of the more aggressive loan types out there. They may be appropriate for your situation, but they present more risk for the lender, and are not always a wise financial choice. They also often come with higher interest rates that may return to haunt you later.

Preparing Yourself To Get The Best Rates

Understood or not, ultimately we all want to get the best interest rates for our mortgage in order to save money. No matter what type of mortgage you choose, there are a few steps you can take to get the best rates. You can reduce your rates by:

> Saving a sizable down payment

> Establishing a pattern of paying your bills on time

> Reviewing your credit report and correcting any errors

> Choose a mortgage agent to shop all the rates for you.  It saves you lots of time and is good for your credit rating as mortgage agents will pull your credit once and submit the same report to thier lenders.

NOTE:

Keep in mind, rates are not everything, discuss your financial goals with your mortgage agent. Since they have access to a vast amount of different products and lenders, there may be a product with a slightly higher interst rate but puts you closer to your current financial goals.  They also conduct a full mortgage analysis annually to ensure you are on the right track to meet your goals, and are prepared to discuss this with you and make changes where necessary.  Armed with these simple facts, you can protect yourself from bad financial choices.Contact your mortgage agent today!!

Any questions or pre approval requests.  (Pre approvals in as little as 3hrs)

Call (647)-880-4119 or email: jeff.levasseur@smibroker.com