Saturday, May 30, 2009

Do you know what affects your mortgage rates?

When it comes to securing a mortgage loan almost everyone has a word of advice, and with so much being said it's easy to lose sight of what's most important, finding a mortgage rate this is right for you. Potential homebuyers are frequently advised to seek competitive mortgage rates, but are often not made fully aware of just how to go about doing so. Before homebuyers can get the best mortgage rates available, they must first be aware of what affects them.



What you can't control



There are many factors outside of your own control that affect the mortgage rates that are offered by lenders. Here are just a few of them:



� Inflation � Economic forecasts and news � Foreclosures � Defaults on loans � Early repayments of loans

These factors are the reasons that rates can fluctuate at any given time, and are also the reason why anyone interested in taking out a mortgage loan of any type should vigilantly watch interest rates before making a final selection.



What you can control



Once mortgage rates have been determined, the ball is then in your court. Having strong personal finances is the best way you can qualify for a prime mortgage rate. Any broker would highly suggest that you have:



� Good credit � Low to no debt � A sizeable down payment � A large cash reserve � Steady income

It's important to remember that mortgage loans are exactly what they say, loans. If you want to get the best mortgage rates available then you have to prove yourself creditworthy and that means demonstrating an ability to repay the loan on time throughout the life of the loan.



What you can do to get the best mortgage rate



Compare prices-Buying a home is big decision and the financial impact will last for years. Therefore, you should be seriously dedicated to finding a rate that is competitive. Using the internet is the easiest way to compare multiple rates.



Save up-The costs associated with purchasing a home are extensive. Down payments, closing costs, fees, commissions, and taxes can all add up to equal much more than many people plan for. Begin saving money well in advance of your anticipated purchase date.



Be patient- Because mortgage rates do in fact fluctuate, being patient can assist you in getting the best rates. Although you can't time the mortgage market, you can closely monitor the trends of the market and pay attention to economic news. Seeking advice from a broker is also strongly advised since they are paid to do all of these things and are skilled at it.



by Marcus Brady

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