2015 Tips for Home Mortgage Buyers Looking for Low Loan Rates

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Home Mortgage loan situations can change as often as the wind blows, but if you still want to lock in a great rate in 2015, don’t despair, you might still be able to do so if you act promptly.

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Be encouraged by following these 10 tips to help you get a low loan rates rate in 2015:

2015 Tips for Home Mortgage Buyers Looking for Low Loan Rates

TIP #1: KEEP TRACK OF YOUR FINANCES

Unlike in years past before the housing bust and market recoveries, lenders will be extra careful on passing out home loans in 2015 as the new mortgage rules and regulations take effect in January.

Lenders have to be able to prove that buyers have the capability of paying back their loans, which means you should be able to provide your lender with all sorts of verification of your income.

This means you should have your bank statements, W2 forms and all other pertinent information at the ready – even being able to explain the most innocuous of deposits to you bank account, such as a $750 gift from your parents.

TIP #2: LOCK IN A GREAT RATE AS SOON AS YOU CAN GET ONE

In 2015, rates are expected to go up as the stimulus plan that has kept them artificially low is eased. Therefore, once you’ve performed your due diligence with determining the rate you’re comfortable with, lock it in before you lose it.

TIP #3: REFINANCE RIGHT AWAY IF YOU STILL ARE ABLE

In 2014, the housing rates jumped, thusly a lot of homeowners weren’t able to lock in a low rate prior to the rates rising. However, folks who are still paying greater than 5% in interest might be able to lock in a lower rate.

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Talk to a loan officer to compare how refinancing might help or hurt your situation, and if it will help you in the long run – and you’re able to break even with the closing costs in a reasonable amount of time that benefits you – go for it, ASAP.

TIP #4: BUYERS SHOULD SHOP AROUND FOR THE BEST DEALS

Lenders should be competing pretty hard for buyers’ business in 2015, so buyers should use that to their advantage to get the best deals on a great interest rate on their loan.

TIP #5: KNOW YOUR NEW 2015 RIGHTS FOR MORTGAGE LAWS

The Consumer Financial Protection Bureau’s new rules are effective in 2015 to help the customers of mortgage servicers if and when they become delinquent on their payments, so it helps to brush up on all those rules and use them to protect yourself if you need to do so.

TIP #6: TRY AND KEEP YOUR CREDIT IN THE BEST SHAPE POSSIBLE

Yes, things happen as life goes on, but to the best of your ability, try and keep your credit history and score clear or clean it up as much as possible in order to remain in the position to get a mortgage loan. Great rates usually go to customers with credit scores of 720 or higher, while 680 or lower scores usually mean you’ll be paying a higher interest rate and/or closing costs.

TIP #7: KEEP THE DEBT DOWN TO A MINIMUM

It doesn’t help your financial situation to see that after you pay all your bills each month that you don’t have two nickels to rub together. Try and keep yourmonthly debt plus mortgage payments combined at 43% of your income.

TIP #8: LOOK AT OTHER MORTGAGE OPTIONS

There are a plethora of mortgage choices in existence in 2015, some of which didn’t exist in years past. Familiarize yourself with all the various mortgage types in existence today – but also make sure to research the pros and cons of each one. A short-term ARM loanmight look great, but only once you truly understand how much the interest rate could climb and how much that would make your monthly mortgage payments rise.

TIP #9: THINK AGAIN ON THE FHA LOAN DECISION

The FHA mortgage loan type has always been popular with new home buyers because of the low down payment requirements. However, FHA rates are expected to keep rising in 2015, and the buyer must now pay mortgage insurance for the loan’s life. Try and seek out a conventional loan as a first option instead.

TIP #10: DON’T LET ANXIETY AND RUSHING LEAD YOU INTO MAKING A BAD MORTGAGE DECISION IN 2015

Simply because mortgage loan rates are predicted to rise in 2015, that doesn’t mean you should rush and jump on a bandwagon you’re unfamiliar with and respond to all those scary-looking official mortgage refinance notices in the mail or calls on the phone.

If you do find a great rate and understand all the obligations and costs of how it will affect your mortgage loan, by all means, go for it if you feel comfortable and that it’s the right decision. If not, don’t bow to pressure to sign on the dotted line just because everyone is screaming at you to do so.

Tag : home mortgage , home mortgage loans , us home mortgage

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2015 Tips for Home Mortgage Buyers Looking for Low Loan Rates
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