Check Out the Latest Rates
After steadily rising over the past year, mortgage rates are finally headed back down, and they are now at a very affordable level. In other words, now is the time to make the move for those who are considering buying a home.
Small changes to the mortgage rates can make a big difference in how affordable your home is in total, and it is important to know what the current mortgages rates are and what it means exactly. The following is an overview of where the latest rates stand and how to use it to your advantage to purchase your home at the most affordable price possible.
What are The Current Mortgage Rates?
The current mortgage rate as of March 27th is at 4.17 percent for a 30 year fixed mortgage, which is down half a percentage point from just a few months ago. While it may seem insignificant, this can make a huge difference in the long run, and it can lead to you saving thousands of dollars.
While your exact mortgage rate is dependent on various factors, the average 30-year fixed rate of 4.17 percent is very promising, although good news in home buying does not always last long, so be sure to consider taking action now while the market is favorable.
What Do Lower Mortgage Rates Mean?
Lower rates mean you are able to purchase your home at a more affordable price in total, which is reflected in your monthly payments. Simply put, lower mortgage rates mean you pay less, allowing you to potentially save hundreds each month and thousands in total.
Lower mortgage rates do not necessarily indicate the market is trending in a positive direction for home buyers, and it can be a huge risk to wait for rates to lower even further. If you can find a great deal on your dream home and get a lower mortgage rate, then it is time to consider making the move.
How Your Mortgage Rate is Determined
There are several factors that play a role in determining your exact mortgage rate, including your credit score and down payment. Other factors such as the closing costs, loan type and the location of the property may play a role as well.
The current average mortgage rate gives an indication to what can be expected, and lower average rates likely mean now is the time to buy even if your exact mortgage rate is above average.
How to Get The Lowest Rate Possible
The best and most important way to get the lowest mortgage rate possible is to consider multiple lenders. Each bank has its own rate, and the more quotes you get the better chance you have to find the lowest rate. Ideally, the goal is to have the lenders compete and lower the offer.
You may also be able to wait for even lower rates, although doing so is very risky. Lower mortgage rates are often followed by increased mortgage rates as the demand for homes increases due to the lower rates, so it is often best to be opportunistic when rates are optimal.
Annette Masterson is a licensed broker with EXIT Realty Bob Lamb & Associates in Murfreesboro, TN. She has developed one of the most successful real estate teams in Rutherford County, known as Masterson Network, that specializes in new home construction and residential listings and sales throughout Middle Tennessee. You can email Annette at email@example.com or call her at 615-896-5656 (Office) or 615-533-1660 (Cell) for more information.