Mortgages and mortgage rates can be a confusing and scary aspect of buying a home. Put your fears to rest with facts and advice about how to handle mortgage rates!
Mortgage Rate Facts
A mortgage is the term used for a loan on a house, and the mortgage rate just refers to the interest rate on that home loan. Mortgages are usually prepared as 30-year long loans, but it is far more common for a mortgage loan to be repaid within 10 years. Mortgage rates can increase rapidly depending upon multiple factors, but a decrease in mortgage rates is usually at a more slow and steady pace.
First-time borrowers and homebuyers sometimes assume they will not qualify for a mortgage or a reasonable mortgage rate. Shop around for mortgage rates instead of assuming you will only get high mortgage rates.
Factors Affecting Mortgage Rates
Some visible factors that affect mortgage rates include inflation and your credit score. Inflation can cause lenders to raise mortgage loan rates across the board in order to make up for the fact that the amount they are lending will depreciate as inflation goes down, thus limiting their return on investment.
Your credit score will affect what types of mortgage rates lenders will offer to you. Make sure you have checked on your credit score recently and financial history. Order credit score reports and scour them for any errors before you go into a bank or credit union for a mortgage loan rate. A lower credit score merits a higher mortgage rate because lenders are taking a larger risk.
How to Get a Better Mortgage Rate
You are looking into your future and seeing the purchase of a home soon. What can you do now to prepare yourself and improve your mortgage rates when the time comes? While some factors affecting mortgage rates are based in the economy, there are some steps you can take to make sure you get a better mortgage rate.
Start building your credit now. If you have bad credit or no credit, consider a partnership with Great Basin Federal Credit Union with the Rebuild Together Loan. The Rebuild Together Loan was created to help those with bad credit or no credit improve their credit for financial fitness.
Your FICO score may take a hit when you close accounts, which can affect your mortgage rates available. If you are about to apply for a mortgage loan, do not close any accounts beforehand.
Mortgage Rates at Great Basin Federal Credit Union
At Great Basin Federal Credit Union, we can help you with different types of mortgages: refinances, HARP’s, conventional loans, FHA or VA loans, investment properties, condominiums, and specified manufactured homes. We are able to offer these different types of mortgage loans due to our partnership with Mason McDuffie Mortgage Corporation.
Applying for a mortgage with Great Basin Federal Credit Union also means no application fees or origination fees. You will be speaking with people who know the community and region and the local credit union.
Stop by Great Basin Federal Credit Union today to learn more about getting the best mortgage rates available!Share: