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Fixed Rate Mortgage Article
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Compare the Fixed Rate Mortgage with an ARM
from:Comparing mortgage rates is always a good thing to do when you are shopping around for a fixed rate mortgage. Interest rates vary from one fixed rate mortgage to another, so it is helpful to check around on the Internet to compare the different lending companies and their fixed rate mortgage ad. The ad listed is not necessarily the interest rate you will be offered when you apply for a mortgage loan. The interest rate you are offered will be determined by many factors.
Your credit rating is a major determining factor determining the amount of interest you will be charged with a fixed rate mortgage loan application. Whether or not you have been on time with your monthly payments is a big factor. If this is your first major purchase, and you have no prior credit, you may get a higher interest rate than someone who has proven their credit status by having a clean record with monthly payments made on time.
Fixed mortgage rates differ from adjustable rates mortgages (ARM); the fixed rate stays the same, and the ARM will fluctuate from time to time. The ARM will usually start out low and then gradually increase. The payment in an ARM loan will increase or decrease as reflected by the fluctuation in the interest rate. A fixed rate mortgage payment will stay the same throughout the term of the loan.
A fixed rate mortgage over a 15 year loan will save much more money in interest than a 30 year loan. If you were to compare loans for $100,000 and the 30 year loan at 6.25 percent interest, the amount of interest would be about $121,000, and a 15 year loan with 6 percent interest would amount to almost $52,000 paid in interest. Though the monthly payments in a 15 year mortgage loan are higher, it does save a significant amount of money compared to the 30 year loan with a fixed rate mortgage.
Getting preapproved for a mortgage loan with many different lending institutions is key to getting the best fixed rate mortgage option. Let the lenders compete for your business. Each lender will want your business and they will try to offer you the least amount of interest and still make a profit themselves. A person with a clean credit report could hold out for the lowest bidder, and that is what many borrowers do if they are not in a hurry to make the deal.
Before going to your lending company to sign the papers on a loan, be sure to check your credit rating. If you find any charge offs or unpaid bills that went into collection be sure to clean it up. Nothing could be worse than going to a lender with a bad credit history, so if your credit rating is less than perfect, take the time to pay off these creditors to remove the negative reports. With a good credit rating you can get a loan with a much lower interest rate. When your credit rating is good there is nothing standing in your way for a low fixed rate mortgage.
Fixed Rate Mortgage News
Zillow: Pa. mortgage rates decline slightly - Pittsburgh Business Times
 The Guardian | Zillow: Pa. mortgage rates decline slightly Pittsburgh Business Times Nationally, the average 30-year, fixed rate mortgage declined by a greater margin; as of Tuesday, it was at 4.76 percent, a drop from last week's average of ... Interest on fixed rate loans drops Fixed-rate mortgage? Homeowners should consider all alternatives Bank Of America Home Loan Mortgage Refinancing Bring Low Rates For Homeowners |
30-year fixed-rate mortgage back below 5% - MarketWatch
 MonitorBankRates.com | 30-year fixed-rate mortgage back below 5% MarketWatch CHICAGO (MarketWatch) -- Average rates on 30-year fixed-rate mortgages fell back below 5% this week, returning to match levels seen ... 30-year fixed mortgage rates dip below 5% again Mortgage Rates Fall With Home Demand Mortgage rates fall below 5 percent |
More Canadians thinking of buying a home: RBC - Business in Vancouver
 Financial Post | More Canadians thinking of buying a home: RBC Business in Vancouver Of those who intend to buy a home, 44% plan to take a fixed-rate mortgage, although a greater proportion of people are intending to take a blended variable ... More Canadians plan to buy homes: poll Young aged 18 to 24 twice as likely to buy homes Housing market expected to surge: RBC |
30-year fixed-rate mortgages rise to above 5% - MarketWatch
 FreeRateUpdate.com | 30-year fixed-rate mortgages rise to above 5% MarketWatch CHICAGO (MarketWatch) -- For the first time in three weeks, rates on 30-year fixed-rate mortgages rose to above 5%, according to ... Mortgage Rates Rise; 30-Year Crests 5% 30-year mortgage rates rise above 5% US mortgage rates rise above 5 pct again-Freddie Mac |
Fannie Mortgage Bond Spreads Shrink to Record - Atlantic Online (blog)
Fannie Mortgage Bond Spreads Shrink to Record Atlantic Online (blog) The difference between yields on Washington-based Fannie Mae's current-coupon 30-year fixed-rate mortgage bonds and 10- year Treasuries was unchanged today ... |