Mortgage Interest Rate Trends
Mortgage Interest Rates
There has been some speculation that rates are set to trend upwards towards the end of 2021. However, that has yet to be seen. As you can see in the graphic posted rates have remained relatively stable over the last several months with even a few drops! If you are considering a new purchase it is very important that you keep an eye on interest rate trends as it can dramatically change your buying power. You can have the same financial status but be able to afford significantly more if the interest rates are lower. Below are a few of the different types of mortgages you may be considering.
• VA Loan – VA Loans are a wonderful option for military families as they offer 0% down and great rates. This is particularly helpful for first time homebuyers.
• 30-Year Fixed – 30-year fixed mortgages are the most common and offer decent monthly payments. These are typically recommended on a purchase and not as much on a refinance but depends on your situation!
• 15-Year Fixed – 15-year fixed mortgages offer great rates and if you are able to handle the monthly payment on a purchase this is the way to go! You will thank yourself later when your home is paid off in 15 years.
• 5/1 ARM – This type of mortgage offers adjustable rates but can put you in a difficult situation later if your income doesn’t increase along with your rates. Make sure you fully discuss this option with your loan officer to make sure that you are comfortable.
• FHA – FHA loans are great for homes that are approved for this particular type of loan (many townhomes and apartments are not). FHA loans can be very helpful for first time homebuyers as they offer as little as 3% down.
We understand that all of these mortgage interest rates and all the options can be overwhelming. If you need help navigating the best option for your family we are here to help. The type of loan you select is very important and you want to make sure that you are pre-approved before beginning your home buying process. Give us a call to discuss your real estate goals and we can help guide you in the right direction.