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10 Year Fixed Rate Mortgage Article
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Compare the Fixed Rate Mortgage with an ARM
from:Comparing mortgage rates is always a good thing to do when you are shopping around for a fixed rate mortgage. Interest rates vary from one fixed rate mortgage to another, so it is helpful to check around on the Internet to compare the different lending companies and their fixed rate mortgage ad. The ad listed is not necessarily the interest rate you will be offered when you apply for a mortgage loan. The interest rate you are offered will be determined by many factors.
Your credit rating is a major determining factor determining the amount of interest you will be charged with a fixed rate mortgage loan application. Whether or not you have been on time with your monthly payments is a big factor. If this is your first major purchase, and you have no prior credit, you may get a higher interest rate than someone who has proven their credit status by having a clean record with monthly payments made on time.
Fixed mortgage rates differ from adjustable rates mortgages (ARM); the fixed rate stays the same, and the ARM will fluctuate from time to time. The ARM will usually start out low and then gradually increase. The payment in an ARM loan will increase or decrease as reflected by the fluctuation in the interest rate. A fixed rate mortgage payment will stay the same throughout the term of the loan.
A fixed rate mortgage over a 15 year loan will save much more money in interest than a 30 year loan. If you were to compare loans for $100,000 and the 30 year loan at 6.25 percent interest, the amount of interest would be about $121,000, and a 15 year loan with 6 percent interest would amount to almost $52,000 paid in interest. Though the monthly payments in a 15 year mortgage loan are higher, it does save a significant amount of money compared to the 30 year loan with a fixed rate mortgage.
Getting preapproved for a mortgage loan with many different lending institutions is key to getting the best fixed rate mortgage option. Let the lenders compete for your business. Each lender will want your business and they will try to offer you the least amount of interest and still make a profit themselves. A person with a clean credit report could hold out for the lowest bidder, and that is what many borrowers do if they are not in a hurry to make the deal.
Before going to your lending company to sign the papers on a loan, be sure to check your credit rating. If you find any charge offs or unpaid bills that went into collection be sure to clean it up. Nothing could be worse than going to a lender with a bad credit history, so if your credit rating is less than perfect, take the time to pay off these creditors to remove the negative reports. With a good credit rating you can get a loan with a much lower interest rate. When your credit rating is good there is nothing standing in your way for a low fixed rate mortgage.
10 Year Fixed Rate Mortgage News
30-Year Fixed Mortgage Rate Drops to New Record Low; Current Rate is 3.66%, According to Zillow Mortgage Rate Ticker
SEATTLE -- The 30-year fixed mortgage rate on Zillow(R) Mortgage Marketplace is currently 3.66 percent, down six basis points from 3.72 percent at this same time last week. This represents the lowest rate ...
Read more...30-Year Fixed Mortgage Rate Drops 10 Basis Points; Current Rate is 3.72%, According to Zillow Mortgage Rate Ticker
SEATTLE -- The 30-year fixed mortgage rate on Zillow(R) Mortgage Marketplace is currently 3.72 percent, down 10 basis points from 3.82 percent at this same time last week. On Jan. 17, the 30-year fixed ...
Read more...Rate on 30-year fixed mortgage rises to 3.98 pct.
The average rate on the 30-year fixed mortgage rose this week for the first time this month, though it remained below 4 percent for the eighth straight week.
Read more...30-Year Fixed Mortgage Rate Rises After Falling to All-Time Low Last Week; Current Rate is 3.82%, According to Zillow ...
SEATTLE -- The 30-year fixed mortgage rate on Zillow(R) Mortgage Marketplace is currently 3.82 percent, up 13 basis points from 3.69 percent at this same time last week. The 30-year fixed mortgage rate ...
Read more...30-Year Fixed Mortgage Rate Drops 10 Basis Points
The 30-year fixed mortgage rate on Zillow® Mortgage Marketplace is currently 3.72 percent, down 10 basis points from 3.82 percent at this same time last week. On January 17, the 30-year fixed mortgage rate dropped to 3.69 percent—the lowest rate …
Read more...