When it comes to home buying, there are many things that homeowners need to consider. Not least is affordability. The total mortgage rate is one of the most important factors that can impact affordability. Homebuyers should seek out the lowest interest rate possible. This is what Peachtree Corners, Georgia homebuyers should know about current mortgage rates.
Latest Trends in Mortgage Rates
Peachtree Corners, homebuyers have good news when it comes to current mortgage rates. Rates are near their historic lows and will trend slightly down in the next few months. However, they will rise again in the not too distant future.
After a slight increase in interest rates early in the year, the “interest rate fell below 3% to July across many home loan products including the popular 30-year fixed mortgage.” The rates for 15-year fixed-rate mortgages dropped to near record lows. These are often used for refinancing.
According to industry watchers, data suggests that there will be a downward trend through the summer months. Since April, 30-year rates have hovered around 3%, with a significant fall on July 8, following the dip in U.S. Treasury yields. These uncharacteristically low rates will not last forever. Two rate increases by the Federal Reserve are predicted for 2023, which will almost certainly lead to higher interest rates on mortgages.
According to the nationally known Mortgage Bankers Association (MBA), rates for 30-year mortgages will rise to 4.9% by 2023.
This means that Atlanta homebuyers have the right time to purchase. Buy now to “lock in a sub-3 percent mortgage rate. . . . Do not miss the opportunity to get historically low mortgage rates. We can’t predict if they will drop further or how long they will stay low.
The best practice is for you to shop around for the best mortgage rates. Rates can vary significantly from one area to the next and even from one city to another. To find out the rates and other details about Peachtree Corners, contact your Rent To Own Homes agent. Call 678-337-1165 at Fresh Start Home Sales to learn more.
Important Mortgage-Rate Considerations
Besides knowing what current mortgage rates are and the trends in rates, Peachtree Corners homebuyers have a couple more important considerations. These are . . .
FIXED-RATE OR ADJUSTABLE-RATE
There are two options for homebuyers beyond the loan term: an adjustable-rate or fixed-rate mortgage.
Fixed-rate mortgages lock you into a “consistent rate of interest that you will pay over the term of the loan.” While principal and interest payments are the same throughout the loan term, insurance, property taxes, or other costs can fluctuate; that portion of your mortgage payment goes towards the principal, plus interest will remain constant.
As the name suggests, an adjustable-rate mortgage allows the possibility of the interest rate changing over time. An adjustable-rate mortgage typically has an introductory period of 10, 7, 5, or 3 years. After that, your interest rate will remain steady. The rate can change from time to time, and the upward rate change can mean that your mortgage payments may increase after the initial period. Sometimes, even significantly.
Points are another factor that affects your mortgage rate, and these are the fees you pay to lower your mortgage interest rate. One point equals 1% of your loan amount, which will reduce the interest rate by 0.255%, although this can change.
Remember that discount points can cost thousands of dollars upfront. This allows you to save some dollars each month. The monthly savings can take several years to reach the point where they are more significant than the initial amount. The loan amount, cost of points, and interest rate all affect the break-even period. It can often be seven to nine years. It’s best to skip discount points if you don’t intend to keep the loan for that length of time.
How to Get the Best Mortgage Rates
Peachtree Corners, Georgia homebuyers should do a lot of comparison shopping to find the best mortgage rates. Here are the steps to follow
Different lenders offer various rates; you should apply for mortgages with multiple or multiple lenders. Many lenders can help you find the best rate by comparing their offers. In your comparison shopping, be sure to apply to different types of lenders – credit unions and online lenders.
Consider doing it in a timely fashion. The three national credit bureaus encourage you to shop around. You have 14 to 45 days to apply for multiple mortgages, and this will have the same impact on your credit score and credit score as one loan.
Compare closing costs when comparing lenders to find the best interest rates. Each lender requires the Loan Estimate to give an accurate estimate of closing costs, and this is an essential aspect of comparing mortgage offers.
The Final Ingredient
Working with a local Peachtree Corners, Ga. Home Specialist the real team at Fresh Start Home Sales is the final ingredient. Your agent is not a financial advisor but can help you find the best rates. Your agent can also help you negotiate the best rates for your home purchase. A lower rate coupled with a lower price is a sweet deal. If you are looking for Peachtree Corners, homebuyers, who can get low mortgage rates and better deals, call us Fresh Start Home Sales at 678-337-1165.