How to Find a Good Mortgage in the Current Market

Whether you are a homeowner who is looking to refinance an existing loan or a first time buyer who needs financing, it’s important to realize there are many different options for mortgages today.  To find the best one in today’s economic climate, it pays to check into each one of those options.  Specifically, you want to consider how long you will need to pay off the mortgage, and the current market mortgage rates for both fixed and variable rate financing.

Mortgage Duration

Since people do tend to change jobs and move to new cities more frequently these days, exploring the benefits of mortgages with shorter terms make sense.  Doing so makes it easier to build up equity in the home faster.  As a result, you will be able to keep more of the sale price of the home and still pay off the remainder of the mortgage without any problem.  That extra money can make it easier to negotiate better terms when you buy a home after the move.

Even if you don’t plan on moving, consider a shorter term.  Think of the amount you will save on interest if you can manage the payments on a 20-year mortgage just as easily as one that will run for 30 years.  Those savings can be used to make improvements to the home or otherwise provide you with more financial security.

The Current Mortgage Rates

Don’t automatically go for a fixed rate.  If the rates could actually drop in the years ahead and stay lower than the current market mortgage rates, consider the possibility of going with a variable rate mortgage.

Variable rate mortgages begin with a competitive fixed rate term that lasts for up to ten years.  Why not go ahead and lock it in?  You can always take a second look as the term is about to expire and see what you think about the current market mortgage rates.  Assuming they seem to be creeping upward and show no signs of reversing course, you can always refinance immediately and lock in a lower rate.

Call today and talk with an expert at Loan City Home Loans about their financing options.  By considering these two factors along with the amount of your down payment and the pros and cons of bundling the cost of home insurance into the loan, you are sure to find the option that is right for you.