When looking for a home mortgage it's important to do your research and figure out what option will be the best for you when it comes to the interest rate, loan term, and total amount of interest paid. In general I believe getting a fixed rate mortgage is usually going to be the best choice for most folks, although in some rare instances I might consider getting an ARM if I knew I would be moving within a few years.
Below we have a listing of some of our preferred mortgage providers along with a mortgage rates tool that will help you to find some of the best current rates in the country.
Updated Mortgage Rates
Mortgage Types And Definitions
When you decide the time is finally right for you to get a mortgage to buy a home, it's important to know what different types of home loans there are, and what the terms of each loan type are. Personally I prefer the predictability of a fixed rate mortgage, especially when rates are as low as they are now.
Our mortgage rate table above shows several different home loan types available to consumers:
- Fixed Rate Loan: This is a mortgage loan where the interest rate on your loan is set at a fixed percentage throughout the entire term of your mortgage contract. If you sign up for a 4.75% rate, it will stay at that amount until the loan is paid off, or you refinance. This also means that your payment will always be the same every month – so it is predictable.
- Adjustable Rate Mortgage (ARM) Loan: An adjustable rate mortgage is a home loan where the interest rate is subject to change based off the fluctuation in an index. This could mean that you're paying a lower rate when the index is low, and a higher rate when it goes up. This also means your monthly payment is subject to change. There are different types of ARMs, including those that have a fixed rate for a set number of years, and then switch to an adjustable rate. You'll see mention to a 1 year ARM, 3/1 ARM, 5/1 ARM, 7/1 ARM. Each of those ARMs is set at a fixed rate for a short time, and then switches to a variable rate.
- FHA Loan: An FHA loan is a federal assistance mortgage loan insured by the Federal Housing Administration (FHA). The loan may be issued by federally qualified lenders. Because these loans are insured by the FHA it allows lenders to offer loans to people who might not otherwise qualify or be able to buy a home. In general FHA loans usually require a low down payment, lower closing costs, and a borrower who may not have as high of a credit score. Since this is an assistance and need based program, not everyone will qualify for one of these loans.
- VA Loan: A VA mortgage loan is similar to a FHA loan. It is guaranteed by the U.S. Department of Veterans Affairs (VA), and are available to honorably discharged veterans or their unremarried widows or widowers. VA loans typically require a minimal or no down payment and offer lower interest rates than might otherwise be available to the veterans.
Mortgage And Real Estate Related Posts
We've got quite a bit of mortgage and real estate related content on the site. Here's some selected articles.
- How Much House Can You Afford To Buy? Should You Buy Less Than Your Means Allow?
- What Does It Cost To Sell A House? How Much Can You Expect To Pay In Fees, Commissions And Taxes?
- Buying A New House Is Not Cheap: Expenses Not To Forget When Buying A New House
- Should I Pay Off My Home Mortgage Early Or Invest?
- Should You Rent Or Buy A House?
- Buying A Home? Consider The Costs Of Home Ownership First!
- Things You Do That Could Cost You Money When Buying A Home
- 10 Tips To Help Sell Your Home Fast In A Down Market
- Why Can't I Sell My House?
- 2 Compelling Reasons To Buy The Most Expensive House In Your Neighborhood
- Don’t Buy A House Just Because People Say It’s A Good Time To Buy
- Pay Off The Home Mortgage Early: Pros And Cons Of A Paid For House
- Dave Ramsey’s New House: Did He Follow His Own Advice And Pay Cash?
- Dave Ramsey Comments On My Post About His New House, His Debt Philosophy And Giving.
- Considering Refinancing Or Getting A New Home Loan? Here’s How To Read That Confusing HUD-1 Settlement Statement
- My Experience With The Making Home Affordable Refinance Program: Part 1
- My Experience With The Making Home Affordable Refinance Program: Part 2