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Fixed Rate Mortgage Michigan 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.
Fixed Rate Mortgage Michigan News
30-year Fixed-rate Mortgage Averages 3.88 Percent
MCLEAN, Va., Jan. 19, 2012 /PRNewswire/ -- Freddie Mac (OTC: FMCC.OB - News) today released the results of its Primary Mortgage Market Survey ® (PMMS ® ), showing average mortgage rates changing little amid mixed ...
Read more...Mortgages: 30-year fixed-rate mortgage hits record low
Interest rates on the 30-year fixed-rate mortgage hit another low this week, averaging 3.88% in Freddie Mac’s survey of conforming mortgage rates.
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Like many homeowners, Vicky Kovari and her husband want to refinance their mortgage. A lower interest rate would save them hundreds of dollars a month -- and it would cost them, too.
Read more...Mortgage rate continues to hit new lows
The average rate on a 30-year fixed mortgage reached a new low this week, falling to 3.88 percent, according to data released Thursday by Freddie Mac . The average 30-year rate fell a fraction of a percentage point below last week’s 3.89 percent, the previous record low, and marks the seventh consecutive week in which the average has been below 4 percent. The average 15-year mortgage rate, which ...
Read more...Mortgage rates hit record low
WASHINGTON -- Interest rates on the 30-year fixed-rate mortgage hit another low this week, averaging 3.88 percent in Freddie Mac's most recent survey of conforming mortgage rates, released on Thursday.
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