Compare The Best Mortgage Rates in East Bank, WV
Comparing Mortgage Rates in East Bank, WV
When it comes to getting a home loan, either to buy a home or refinance the terms on a current mortgage, interest rates are very important. A low interest rate can save the borrower a substantial amount of money over the term of the loan. Those looking for the best mortgage rates in East Bank, WV can use MyRatePlan to get all the tools and other info they need. When borrowers do their homework and compare home loan rates before committing to anything, they can ensure they don't end up paying more interest than necessary.
How a Borrower Can Secure the Best Mortgage Rate in East Bank, WV
If someone is interested in buying a home in East Bank, WV, they are more than likely going to need a mortgage to do it. Even the homes with the lowest prices are still typically at least $50,000, and since that's more than the majority of people have sitting in their bank accounts, it's just about impossible to get a home by paying cash. That means the homebuyer is going to need a home loan for financing, and they'll want the absolute lowest possible interest rate to keep costs down. The first step, after the prospective borrower locates the home of their dreams, is to do their own research on mortgage lenders. It's common for real estate agents to give their own advice here, and they often recommend mortgage lenders they've done work with in the past. The problem is that the real estate agent primarily cares about closing the home purchase, and the buyer's interest rate is secondary. But getting a mortgage approved quickly isn't always best, as it can take time to find the top deals. The borrower should look around and use the internet to get the info they need to make an informed decision. With the MyRatePlan mortgage rate tool, any borrower is able to pull up the lowest mortgage rates across East Bank, WV. Now, to receive approval on a loan at a low rate, the borrower will need to have a good credit score, and the higher, the better.
Different Types of Mortgages Available in East Bank, WV
There are a variety of loan products on the market to appeal to all kinds of different buyers. Mortgages can be separated into the fixed-rate and variable categories.
With a fixed-rate mortgage loan in East Bank, WV, the loan's interest rate will stay the same for the whole repayment term. This also means that the buyer's monthly payment stays the same until the loan is paid off, and it remains true even if the loan is going to last decades, as is the case with 30-year fixed-rate mortgages. For the buyer, this means that they always know how much they'll be paying and they don't need to worry about interest rate fluctuations.
Adjustable-rate mortgages (ARMs) in East Bank, WV work much differently, because they have interest rates that can adjust with the market. There is usually an initial period of time where the interest rate is locked in, and after that time period ends, the interest rate on the loan adjusts every year. Since this effectively blends the fixed-rate mortgage and the ARM, these loans are sometimes called hybrid ARMs. One example would be a 5/1 ARM, with the numbers indicating how long the interest rate is fixed. In a 5/1 ARM, the first five years of the loan have a fixed interest rate, and from then on out, the interest rate adjusts annually.
East Bank, WV FHA Mortgage Loans
Every borrower will need to decide whether to get a fixed-rate mortgage, an ARM or a hybrid ARM. They also need to figure out if they want to stick to a traditional type of home loan, which is only backed by the mortgage lender, or apply for a government-insured home loan, such as an FHA loan, a VA loan or a USDA loan. With these loans, the federal government is providing insurance or a guarantee on the loan to help the lender avoid heavy losses in the event of a borrower defaulting.
FHA loans in East Bank, WV are offered by the Federal Housing Administration, a branch of the Department of Housing and Urban Development, or HUD for short. The FHA has a mortgage insurance program to cover lenders, and its FHA loans are an option for any type of borrower, meaning it's not only first-time borrowers who can get an FHA loan. That mortgage insurance covers any losses the mortgage lender would have if the borrower defaulted. One significant advantage with an FHA loan for the borrower is that they can get one with a much lower down payment, even as low as 3.5 percent of the home's total cost. The drawback with FHA loans is that the borrower must cover the cost of mortgage insurance, which adds to their monthly loan payment. They wouldn't need to pay as much if they put down a larger down payment and got another type of loan.
Home Loan Refinancing in East Bank, WV
If you wish to refinance a mortgage in East Bank, WV, you should understand that the actual process involves applying for a separate, new mortgage. Keep in mind that you may need to pay for certain fees such as closing costs when completing this process. If your primary goal is to get a lower rate of interest via refinancing, take a moment to consider if the fees will allow you to offset the potential savings you want.
There is one exception if you wish to refinance by changing a fixed-rate loan into an adjustable-rate loan. Here, it is more common that rates will increase rather than decrease in the future. If you want the best possible rate on your home loan, the lending company needs to view you as a low-risk candidate. You should keep debt-to-income low and your credit score stable and high to give yourself the best chance at a fixed-rate loan. With all of that said, it is still possible to get home loan approval in East Bank, WV even if you don't meet all criteria.