New lending programs are allowing homeowners to lock in a low rate mortgage before the Fed increases interest rates
When homeowners visit the Home Loan Websites, they may be shocked at the low interest rates available to them. Many are also surprised that in less than 2 minutes they can get a quote on a low-rate fixed mortgage with No Appraisal Necessary. Best of all, homeowners who use this free service will be able to compare rates from at least 4 lenders that match their scenario. Banks are anxious to start lending during the upswing of the current housing market and while rates may never be this low again.
The recent spike in mortgage rates has homeowners scrambling to save thousands over the next several years by locking in a rate today. Many homeowners are just now recuperating from seeing their home values plummet in the past, to finally seeing positive equity, and are concerned they won’t be eligible to refinance into a low-rate mortgage before rates begin climbing higher.
The Fed lowered short term rates several years ago to near zero in an effort to revive the economy and now that we are seeing a recovery it’s expected we will begin to see rates escalate to normal levels. Historically, rates on 30 year loans are usually between 5.50%-7.25% and higher. Below is the difference on a $200,000 mortgage for a 30 year term at an available rate today of 3.25% vs 6.75%.
There is good news though, lenders are eager to refinance home loans into low interest mortgages while they are still available. Additionally, new programs have been issued to assist homeowners with low to negative equity. However, not all lenders are equal and not all lenders have access to these loan programs. The best way to find a lender that can offer you a Conventional, Non-Conforming, Jumbo or FHA mortgage is by using an unbiased loan comparison source.
TIP: Finding these lenders and having them compete for your business is the key to getting the lowest rate possible.
Luckily in today’s competitive environment, companies have setup portals that connect you to every type of lender who wants your business. Now everyone has access to their best rates thanks to free comparison services like The Easy Loan Site. You can access this free service to receive rate quotes that match your criteria.