There is no easy answer. The reason being, there are many different options when obtaining a mortgage. For instance, you have to consider all of these factors when determining your mortgage:
- How much are you putting down?
- What is your credit score?
- Are you obtaining a Conventional, FHA, VA, USDA, or other loan?
- Are you attempting to do a “no cost” loan or are you willing to pay transaction costs on top of your down payment?
- How many years (30, 15, or other) is the mortgage amortized for?
- Is the rate fixed or adjustable?
These factors can dramatically impact the rates available to you. As a result, a “good” mortgage rate is relative to your situation.
Here are few tips to ensure the rate you get on your next mortgage is a good one:
1. Use A Mortgage Broker
As mentioned here, Mortgage Brokers offer the most cost-efficient mortgages available—a fact that cannot be argued. A broker has the ability to get you a better rate and lower fees than any bank or correspondent lender.
2. Watch out for Teaser rates
A teaser rate is temporary. It doesn’t last the life of the loan. It may seem like you are getting a good rate to start, but at some point, the rate will change—and not to your benefit. For more information on teaser rates check out this blog.
3. Ask the Consumer Finance Protection Bureau (CFPB)
The CFPB is a government agency that was created to help protect consumers in their financial endeavors. They have a tool on their web site that allows you to see what the average mortgage rates are at any time. To see what they are now, click here. This site also shares other ways to protect yourself during the mortgage process to ensure you are not only getting a good rate, but a respectable loan.
Are you looking for a GREAT mortgage rate? I designed Stewardship Mortgage to offer the most competitive interests possible to my community. Schedule time with us below to get a rate quote!