More Mortgage Knowledge Means Better Chances of Finding a Great Deal

A man showing the contract for a mortgage loan National mortgage rate averages inched higher on May 9, 2017. 30-year fixed mortgage rates climbed 3 basis points to 3.93 percent. 15-year fixed mortgage rates also climbed 3 basis points to 3.13 percent. Finally, even the 5/1 adjustable-rate mortgage rose 3 basis points to 3.20 percent.

It’s important to know these things, as they can help you decide when to apply for a mortgage or refinance an existing one. Your knowledge of current market also allows you to get the best mortgage rate in Ogden, Utah and anywhere else.

How Much Do the Payments Cost?

The current 3.93 percent of the 30-year mortgage means $473.39 in principal and interest payments every month for every $100,000 you borrow. The 3.13 percent on the 15-year, on the other hand, indicate $697 in monthly payments. With the 3.20 percent of the 5/1 ARM, you will pay $432 a month during the first five years.

Equip Yourself

Now, you may be planning to apply for a mortgage to buy your first home or to finance a new one. Before you apply with the current rates, you can first equip yourself with enough knowledge to understand the intricacies of mortgage loans. The more you know about home loans, the better you can choose which loan will be perfect for you.

Look at the APR

By looking at the annual percentage rate (APR), you can know how much the origination and closing fees, mortgage points, and additional expenses will cost in a particular loan. Such additional costs usually surprise clients since they only look at the low mortgage rate. You can protect yourself from misdirection and find an affordable loan by checking the APR.

Shop Around

You probably already know this, but it can be easy to forget. Shop around to find the best mortgage rate in your location. Compare all mortgage deals carefully. As you will be making a long-term commitment, you should have no room for mistakes.

You can find more suggestions and ideas on mortgages online. Unless you have already spent months preparing for your mortgage application, you can postpone your application until you have gained a solid understanding of mortgages and the ways to find the best rate in town.