Record Low Mortgage Interest Rates

Interest rate and terms vary widely between borrowers. It is crucial to speak with a local mortgage expert who prices loans based on your property’s value, your credit score, and the loan terms you desire.

Realize that’s there are 7-10 factors which must be considered before an accurate mortgage interest rate can be quoted. If you haven’t talked with a lender who has taken the time to get to know your situation, then you are being provided an inaccurate mortgage quote which may come back to haunt you in the future.

Did you know that having a credit score of 718 versus a credit score 720 could result in a 1/8% higher interest rate? For many programs this is indeed a cold hard fact. Many lenders have their most aggressive pricing only made available to borrowers with credit scores of 720 and above. This goes to show that if you have been quoted a mortgage interest rate from another lender who has not reviewed your credit score or the estimated value of your property than the quote is probably worthless.

The team at Northwest Mortgage Experts provides a valuable and rewarding experience for its clients. We provide accurate quotes because we want to establish a relationship of trust and honesty. We take into consideration your entire financial picture and the goals you want to accomplish through a new mortgage. Our clients benefit from years of Seattle area expertise and access to portfolio loan and wholesale mortgage interest rates that beat out the banks and credit unions in our area.

Mortgage rates have hit upon a remarkable trend that is making buying or refinancing a home more affordable now than it has been in recent memory. The average mortgage interest rate for the most popular home financing tool, the fixed 30-year loan, fell to 5.38% in the week of September 16. That is a mere quarter-point higher than it was in April when the mortgage interest rate average reached 5.13%, which was the cheapest it's been since 1985. That means that mortgage interest rates are a full percentage point lower than they were a year ago. This is especially remarkable, because it is common wisdom that anytime you can get a 30-year, fixed loan for a better mortgage interest rate than 6.5% you have a good deal.

In an interesting twist the largest obstacle facing borrowers today is that the huge demand for refinancing has caused a backlog and banks are taking several months to get to applications processed. Banks just lack enough trained loan officers to handle the crunch, especially since they are now looking loans with the scrutiny that they should have been doing over the past decade. This is a very good reason to begin the process today, as many experts believe that mortgage interest rates have hit their bottom in the wake of the economic crisis. Mortgage interest rates are only going to go up and you are going to wish you had taken advantage of them when you could.

Indeed, many borrowers can even get mortgage interest rates under 5% just by paying a point or two on their loan. Paying points is the practice of initially paying a larger portion of the total cost, one point generally equals 1% of the loan amount. This is very worth considering if you have some financial resources now and intend to live in the house for at least a few years. . Another way borrowers can get a mortgage interest rate as low as 4% is to take a loan with a shorter repayment window.

You may well have heard that banks and mortgage lenders have heightened their requirements for mortgages after the foolish lowering of standards that caused the housing bubble and burst. This is true but this return to sane lending standards does not mean that you can't get a good mortgage interest rate as long as you have a reasonable credit score, a steady income, and enough initial capital.