Compare The Best Mortgage Rates in Lehighton, PA

Compare Lehighton, PA Mortgage Rates

It's always important to find the best rates possible for a mortgage when you're looking into buying a home or planning to refinance. With MyRatePlan's unique system, helping you find some of the best home loans is pretty simple. MyRatePlan will give you the tools and data you must make an informed choice about mortgages, every single time. Once you're able to compare rates for various mortgage in Lehighton, PA side by side, you can be more certain of not overpaying in the long run after you purchase that new home.

Getting the Best Mortgage Rates in Lehighton, PA

Shoppers who are in the market for new homes in Lehighton, PA are almost always going to require mortgages to fund their purchases. The most inexpensive homes on the market still tend to cost $50,000 or more, and since people typically don't have that much money sitting around, it's difficult to get a home and pay cash for it. That makes securing a home loan an important part of the homebuying process, and this can be a complicated task, particularly for first-time buyers. It's wise to be patient and avoid rushing anything, because it can take time to find the best mortgage option. Real estate agents usually recommend mortgage lenders they've worked with before to homebuyers, but those homebuyers should do their own research before applying for a home loan. Even though a real estate agent can be helpful, their ultimate goal is to get the deal closed on the home quickly, not find a buyer the lowest interest rate. For that, the buyer should get an idea of rates online with the MyRatePlan mortgage rate tool, which is ideal for locating the lowest mortgage rates in Lehighton, PA. Another important factor in securing a low interest rate is a high credit score for the borrower.

The Types of Home Loans Available in Lehighton, PA

Since there's an extensive range of different buyers out there, it makes sense that there are also quite a few different loan products on the market, including fixed-rate mortgages and variable home loans. Those are two of the most common types of mortgages, and each will suit different types of buyers.

When the buyer gets a fixed-rate home loan in Lehighton, PA, their interest rate stays the same throughout the whole loan term, whether that lasts for 10, 20 or 30 years. With the interest rate staying the same, the monthly payment amount also stays the same. A fixed-rate mortgage is a safe option, because the buyer never has any surprises with how much their home payment is.

As their name suggests, adjustable-rate mortgages (ARMs) in Lehighton, PA don't have one set interest rate. Instead, the interest rate can go up or down. The most common type of ARM is a combination of an ARM and a fixed-rate mortgage, sometimes referred to as a hybrid ARM. For an initial period, the mortgage has a fixed interest rate. After that, the mortgage's interest rate adjusts on a predetermined schedule. For example, a buyer could get a 6/2 ARM. The six means that the loan has a fixed rate for the first six years. The two means that after that initial period, the interest rate adjusts every two years. The issue with ARMs is that the borrower's monthly payment could go up.

FHA Home Loans in Lehighton, PA

If you are in Lehighton, PA, you would have to choose between the kind of loans mentioned above, which are fixed-rate or adjustable-rate mortgages. However, you would have to choose between the conventional loan or the government-insured mortgage. A conventional loan doesn't come with assurance from the government, but the government insured loan comes with a federal guarantee. Traditional loans are different from the other types of mortgages that are backed by the government, such as USDA loans, VA loans, and FHA loans.

The FHA mortgage insurance program is governed by the HUD or the Department of Housing and Urban Development, which is managed by the government. FHA mortgages are available for all types of borrowers in Lehighton, PA, and not just the first time home buyers. In this kind of government-backed mortgage, the government ensures the lenders from any losses that might result due to default committed by the borrower. One of the most significant advantages of these types of loans is that the borrowers have to pay the down payment that's as low as 3.5 percent of the purchasing amount. However, the disadvantage is that the borrower would have to pay for mortgage insurance, which would increase the cost of monthly payments.

Refinancing Mortgages in Lehighton, PA

Refinancing a mortgage in Lehighton, PA means that you will be applying for a whole new mortgage. Once you are approved for refinancing you will be required to pay the closing costs and any additional fees. This is an important fact to keep in mind if you are refinancing to get a better interest rate on your current loan. It's important to check whether or not paying the additional fees will be beneficial to you in the future. One exception is if you are going for an adjustable-rate loan to a fixed-rate loan. Since interest rates are likely to increase instead of decrease in the future, this is more than likely a good move on your part.

To get the best interest rate on your mortgage, keep your credit score as high as possible. Your debt-to-income ratio should also be low to help you achieve your goal. However, don't give up hope if your score isn't the best. There are still ways that you can get approved for a loan in Lehighton, PA when you take the time to look for a lender. Use MyRatePlan to get started and to compare the loans and interest rates from lenders you can trust.