In the year of 2016, jut about 14% of all homebuyers financed 100% of their purchase by way of a mortgage. This means that mortgages are popular in the United States because this does not even include all of the people who mortgage only a portion of their purchase. As a result, it is important for homeowners to properly understand mortgage rates.
Mortgage rates are very much the same in terms of a car loan rate for instance. It is essentially a large loan that will be paid off over time to help homeowners get a good deal on homes. Anyone that is getting ready to deal with a mortgage company should utilize a mortgage calculator.
To get an FHA loan for a mortgage with a down payment as low as 3.5%, the borrower needs a credit score of 580 or higher. FHA stands for Federal Housing Association and they are usually distributing loans to homeowners. Here are some important pieces of information for anyone applying for mortgage rates.
Get Educated On Mortgage Rates
According to the 2016 National Association of REALTORS Profile of Home Buyers and Sellers, approximately 35% of home buyers were first-time buyers. First-time home buyers are usually inexperienced and know nothing about owning or buying a home. Thus, they can be easily swindled into a bad mortgage or home buying situation and should pay attention to the fine details or consult with a professional.
According to data collected in September of 2016, 59% of homeowners wish they understood the terms and details of their mortgage better. So as previously mentioned, there are so many homeowners that get involved with home loans without understanding the details of their home loan. This will lead to difficult mortgage rates that are high and dangerous for first-time buyers.
Get Manageable Mortgage Rates
In March 2016, the average sale price for a home in the United States was $186,000. There are a lot of homeowners that cannot afford this entire price and they will sign up or apply for mortgage rates by way of a home loan. When this happens, it is truly essential for homeowners to get the best rates that they can. If homeowners can achieve receiving favorable rates they can easily make monthly payments on time.
According to the 2017 NAR Home Buyer and Seller Generational Trends report, 24% of buyers reported using an FHA loan. Getting a home loan is pretty popular but be sure to get this loan favorable towards your interests. Just because you are asking for help with purchasing a home does not mean you deserve to be at the mercy of unfair mortgage rates.
In Conclusion
Every single year there are homeowners that utilize a home loan and personal loans to get the most out of their home buying process. This can be incredibly helpful when homeowners are looking to construct a brand new home as opposed to just buying an older home!
