Mortgage Rates
If you are in need of a mortgage rate, then you are in the right place. The links below will help you find the best mortgage rates for your estimated loan amount, purpose of loan (i.e. purchase or refinance), and for your state. Once you’ve selected a link below, use the drop down boxes to refine your search on the lender’s website. To assist you even further there is even an additional drop down box for you to select the type of loan you need. You can select from fixed loans, ARMs, and even VA loans.
- Before applying for a mortgage, grab your TransUnion credit score from CreditKarma. They offer 100% free credit score without having to enter your credit card information.
The rates are constantly being updated, and you can see that there are several companies to choose from. The best places to search for the best mortgage rates are:
4 Types of Home Loans
You’ll notice in the mortgage rate table above that there are 4 main home loan types to choose from. I thought I’d use this section to provide a little more detail about each of those different loan types. I personally use a fixed rate loan and recommend it for most consumers. However, it’s important to understand the various loan types so that you can make the most educated decision. After all, this is probably the largest amount of debt you’ll be taking on in your life.
Fixed Loan – A fixed rate mortgage is where the interest rate on the loan stays fixed throughout the term of the loan. So, if your rate is 5%, it will stay at that amount throughout the life of the loan. Since the rate is fixed, so is your monthly payment. This type of loan is easy to understand, calculate, and for those reasons it’s the most popular here in the US. Particularly the 15 year and 30 year variety.
ARM Loan – An adjustable rate mortgage (or ARM) is the type of loan where the rate is not fixed. It varies based on the fluctuation of some index (i.e. the Cost of Funds Index). These types of loans provide a steady income for the lender and will cause the borrowers monthly payment to fluctuate. When you see a “3/1″ or “5/1″ in front of the ARM, this is referring to a “hybrid ARM”. The rate stays fixed for a period (represented by the first number), and then changes to an adjustable rate each subsequent year.
FHA Loan – A federal assistance mortgage (or FHA) loan type is a loan that is insured by the Federal Housing Administration. Lenders must be “qualified” to be able to issue these loans. Because the loans have these extra insurances, the lenders are able to give them to people who would otherwise not be able to afford a home. FHA loans usually require a lower down payment, lower closing costs, and not as high of a credit score from the borrower. Only certain income levels can qualify.
VA Loan – A VA loan is similar to an FHA loan, except it’s insured by the US Department of Veterans Affairs. VA loans are given out without a down payment, without private mortgage insurance, and without a second mortgage. Only veterans and certain income levels can qualify.
