You can find the lowest mortgage rates by visiting any bank or newspaper website and compare those to today’s mortgage rate. Current mortgage rates might be lower than they were a year ago but the real estate market is also suffering its longest decline ever.
Today's Mortgage Rates
The interest rate a borrower can find today is the lowest mortgage rate in more than four years.
There are a number of firms that track interest rates, but at anytime a borrower can look to the internet, at their local paper or watch local or national news to find out exactly where today’s mortgage rate is and compare it to mortgage rates of the past. Current mortgage rates reflect the struggling housing market as it attempts to recover from serious lows of the past few years.
During these trying economic times, the Federal Reserve has done many things to try and stem the effects of the real estate market and reinvigorate it for a comeback. When the Fed stated that they would by a sizable chunk of mortgage backed securities, interest rates fell well below the 6% mark.
What this means for you, the borrower?
What does all this mean for the home buyer or home owner looking to refinance? It means that it is more important today, to research and shop around for an awesome interest rate. If you are given a mortgage loan interest rate from a lender, that does not mean it is the best you can get. Look to other mortgage lenders, get offers from them on interest rates and see if it beats out the previous offers. If they do, find the lender that makes you the most comfortable and negotiate if they are not the lowest. Let them know you were given a lower rate by another company and most of the time, the company you want to work with will match the lower rate.
Be careful what company you go with.
It is important for borrowers to look out for themselves when entering into a home loan. Making sure you will be getting today’s fixed mortgage rate is important since having a fluctuating interest rate can hurt more than help. If you have a fixed rate, then if the housing market rebounds and interest rates go up again, you will be locked in at the rate you received when purchasing your home. If you go with an adjusting interest rate, you will be at the mercy of the markets. If interest rates rise, so will your home mortgage interest rate. For many, this could be the difference between hundreds and thousands of dollars.
Some things to look at when entering the housing market
Part of the current housing problem stems from the many home buyers that bought high priced homes with variable rate mortgages and found that when interest rates went up, they could not afford to keep their homes.
The bottom line for anyone looking to enter the housing market and purchase a home, is to do all of the research you can for the area that you are looking to buy in and for a mortgage lender that you feel the most comfortable with. It is important to find a lender that you can speak with and communicate with since you will be paying back the loan they give you for upwards of 30 years.
Making sure you lock in your interest rate with the company you decide to go with for a loan is also important, It might cost you a small fee but it could save you thousands of dollars if you don’t lock the rate in and it begins moving up. It is always up to the borrower to make sure that they receive the lowest interest rate comparable to the average at the time of their purchase. The only way to do this is with a lot of leg work and a lot of internet research if you don’t feel like visiting the lenders in person.