Should I Consult Financial Services for Purchasing or Refinancing a Home?

FinanceMortgage & Debt

  • Author Alberto Kreider
  • Published January 16, 2013
  • Word count 377

A mortgage loan is a loan secured by a real property through the use of a mortgage note. Mortgage notes are proven through the granting of mortgages, which secure the loan. Normally, the word mortgage alone refers to a mortgage loan. A homeowner or builder can obtain financing to either buy or secure a property from a financial institution, such as a bank or credit union. Through mediators, this process can happen indirectly or directly. Characteristics of the loan such as method of paying off the loan, interest rate, maturity and size all can differ greatly. Home purchases can also be funded by a mortgage loan. Not very many individuals have the means to purchase a property out of pocket, and the mortgage loans allow them to buy the home that they want.

Recently, mortgage rates have been at market-leading lows in some cases. As an example, Florida mortgage rates are four basis points below the national average of 3.22%. For the most part, banks are showing low mortgage rates today. Because of these low mortgage rates, now is a great time to think about purchasing or refinancing a home.

The average rate on a 30-year loan is now 3.31%, which is the lowest the rate has been since 1971. On average, 15-year loans are at 2.63 percent, while the previous year a 15-year loan was at about 3.30 percent. New construction and home sales are rising because of these low mortgage rates. Lower mortgage rates have encouraged more people to refinance, which usually leads to lower monthly payments and more consumer spending. The general fee for 15- and 30-year loans is 0.7 points.

In recent times, the average rate for a five-year adjustable rate mortgage has been 2.74 percent with a 0.6 point fee, and the average rate for a one-year adjustable rate mortgage has been 2.56 percent with a 0.5 point fee. You must have a record of good credit and credentials in order to receive the lowest mortgage rates possible. Documents should be submitted for income and assets and employment, which will then be verified by the lender. Some lenders may request additional facts after the examination of the loan file.

In regards to finding a mortgage loan, it is best to consider consulting a professional to help you figure out your best options .

A good resource for reviews can be found here: Foundation Financial Group .

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