Best Mortgage Rates in Decades

If you are getting ready to buy a home then you must start shopping for a lender and a mortgage with good rates.

MoneyWhat makes this a good idea is that right now, we happen to be enjoying some of the best mortgage rates we’ve seen in decades. But have you ever considered the difference it can make to the mortgage you end up with, to go through a mortgage broker or to go through a bank loan officer?

If you want to live cheap and still own a home it depends on what kind of credit you have. If your credit is bad it will be more challenging to get a loan, but not impossible.

Bad credit mortgages are ones that generally have a higher interest rate. This rate can add a lot of money to your overall loan without the benefit of getting a home with a higher value. Tread carefully when you are considering doing this. If you are already have money trouble, adding a high interest rate to a mortgage substantially ups the chances that you are going to lose your home to default or foreclosure.

Banks are pickier now, and any sub-prime loans have even bigger rates because they are considered to be so risky.

To find the lowest rates, your search needs to be relentless and it needs to deal with the way the system works. You need to hunt for the lowest interest rates and processing costs, the best points and the most favorable adjustment features. No attention needs to be paid to where the mortgage comes from or what kind of relationship you have with your current bank. It’s pretty certain that before your mortgage term is up, that the owner will have sold your mortgage to someone else – and you’ll find yourself dealing with a new party anyway.

Borrowing from hard money lenders though, isn’t easy. You first hurdle is actually finding one. These lenders only do business in their immediate neighborhood. They like to do business in the area they understand, and they like to see the property that they are dealing with. If you’re interested in such a loan, you need to find one of these lenders by calling mortgage brokers in your area who might know someone. Hard money is usually called “private money” in the business. You’ll see advertisements listed that use this language.

The closing costs on a mortgage may be 2 to 3% of the price of the home you are going for. And it’ll include all kinds of costs – an origination fee, appraisal and survey costs, transfer tax in attorney’s fees and so on.

Some lenders will no longer touch so-called sub-prime borrowers any longer anyway.

Make sure that you know what your closing costs are. And of course, on top of all this, your lending institution will want a separate credit report fee for pulling your report. And this isn’t included in those closing costs.

Typically, these loans are only obtainable through intermediaries or providers. They know people or companies that are interested in making hard money loans, and find a way to match them up with people who need them.

Make sure that you are prepared with name of the employee in the lending institution are dealing with in case you are not clear about something down the line.

More personal finance tips and info on mortgages.