How to get the best mortgage rates in any economy

Written by Syd Johnson


Mortgage rates are intricately tied torepparttar health ofrepparttar 112120 overall economy as well as consumer demand for home loans. Two ofrepparttar 112121 most important factors arerepparttar 112122 activities ofrepparttar 112123 Federal Reserve Board and Fannie Mae.

The Federal Reserve board sets interest rates forrepparttar 112124 overall economy and this in turn affectsrepparttar 112125 type of mortgage rates that are offered to consumers. Fannie Mae buys your loan onrepparttar 112126 secondary market and this frees uprepparttar 112127 cash from mortgage lenders so they can offer additional loans to more people. This also has a major impact onrepparttar 112128 type of mortgage rates that are offered to consumers.

Clean credit isrepparttar 112129 best On an individual basis, nothing trumps good, clean credit. If you have excellent credit, or even good credit, you will find thatrepparttar 112130 mortgage rates that are being offered to you will always be atrepparttar 112131 market rate or belowrepparttar 112132 market rate. The mortgage rate is what you pay for borrowing money.

If a bank or credit union thinks that your financial history shows that you might have some trouble paying backrepparttar 112133 loan, thenrepparttar 112134 rate will be very high. A solid payment history and a clean credit report isrepparttar 112135 best way to show them that you can handle this type of responsibility.

Short on cash? Finance the Mortgage Points

Written by Syd Johnson


Once you get a quote for a home loan don’t be tempted to takerepparttar entire amount if it looks like you overqualified. Most consumers fill out an application for a home loan and hope they can get enough money to buy their dream house.

A nice chunk of those consumers also overqualify for their home loans. If go to your local bank, credit union or mortgage broker and you are approved for a $500,000 home loan, they payments might be a bit more than you realistically afford.

Look at your entire budget If you are not good with your money or would prefer to not stretch your finances torepparttar 112119 limit to get a home, get your hands on a good mortgage calculator as soon as you getrepparttar 112120 figures on your home loan. You might think all will be fine as long as you can own your own property.

However, you must take into account all ofrepparttar 112121 things that come along with owning a home. Sometimes you can get so caught up withrepparttar 112122 actual dollar amount of your home loan that you forgetrepparttar 112123 other pieces of your budget.

Check your budget to see if you still have money to enjoy things like going out, purchasing new furniture, a family vacation once per year and regular manicures and pedicures. Then add in your student loans, car payments, credit card bills, lunches at work and tickets to take your family to baseball games a couple of times every season.

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