- Buying a house in the US does not have to be a nightmare, on the contrary your dream could come true and if you do not believe it, check the interest rates as of Monday, March 29
- Today you can find an average 15-year fixed rate of 2.63% and an average 30-year fixed rate of 3.58%
- We provide you with the national average rates for conventional mortgages, which can be what you consider “normal mortgages”
Buying a house in the US does not have to be a nightmare, on the contrary your dream could come true and if you do not believe it, check the interest rates as of Monday, March 29. Yes, they are very low! And that can be a golden opportunity for you and your family when purchasing a new home.
Since last week, mortgage and refinance interest rates have dropped. They had already been staying in historical lows, but these days mortgage rates fell at least three basis points, reported Business Insider. In addition, experts recommend that you get a mortgage at fixed term early! because this is the time to ‘tie in’ a low rate.
MORTGAGE INTEREST RATES: Monday, March 29
Mortgage rates are low and have fallen again since last week. So today you can find a 15-year average fixed rate of 2.63% and an average 30-year fixed rate of 3.58%. Both rates similar to last week. Instead, ARM rates have dropped further since last week.
We provide you with the national average rates for conventional mortgages, which can be what you think of as “normal mortgages.” Government-backed mortgages through the FHA, VA, or USDA may give you a better rate, since you’re qualified.
REFINANCING FEES: Monday, March 29
Specialists say that precisely because rates are falling is that this is the time to ‘tie’ a fixed rate. Depending on your financial environment, your best bet is to consider looking for a fixed rate mortgage rather than an adjustable rate mortgage if you are opting for a mortgage or refinance.
As with mortgage rates, fixed and adjustable refinance rates have dropped since last week. So you can find a 15-year average fixed rate of 2.95% and a 30-year average fixed rate of 3.87%. ARM rates are better right now than last week.
In general, rates are at significant lows. Low rates are often a sign of a weak economy. As the United States continues to grapple with the economic fallout from the COVID-19 pandemic, rates are likely to remain low.
Right now the recommendation is to get a fixed rate mortgage and we are going to explain in more detail what that means, but first let’s review some aspects that you should take into account or some steps that you should take before buying the home of your dreams. Let’s see.
BEFORE BUYING A HOUSE
ONE. Get your finances in order, so you can determine how much money you have to buy a home. Consider the down payment of the house and the subsequent monthly payment of the installments that you will have to pay to your lender (private or government).
TWO. Research mortgages. Later, as we discussed, we will talk a little about fixed or adjustable mortgages, but you should contact your bank to find out the types of mortgage loans they offer and the requirements so that you can apply for a loan for the purchase of your home.
BEFORE BUYING A HOUSE II
THREE. Get together with your family or partner and together determine your needs. For example, if they have children they will surely want to find an area with quality schools that they can attend, perhaps the distance from home to work is important, or if it has shopping centers, supermarkets and access to public transport nearby. Ask yourself: What is critical to the comfort of your family?
FOUR. Find a real estate agent to help you find a home that meets your family’s needs. These professionals know the market well and can help you during the buying process, talk to you about the price of each area and clarify if the house is priced according to the market, among other aspects. However, determine if the agent will represent you or the seller. Remember that it will also help you with the home negotiation.
FIXED MORTGAGES FOR 15 or 30 YEARS
What we were coming to! If you acquire a fixed mortgage, you can talk with your lender to evaluate that it is 15 or 30 years (or some other term they have). What do you mean at 30 years? That you will have a period of 30 years to pay your mortgage during which the same interest rate that you assumed from the beginning will be maintained. However, keep in mind that a 30-year fixed mortgage usually has a higher interest rate than if you decided to pay it off over a 15-year period.
The advantage of a fixed mortgage is that you will make monthly payments of the same amount from beginning to end. The amount varies depending on the term you choose: in a shorter term the value would be concentrated and the quota would increase. In a longer term, you will be able to divide the payments over more months. The downside is that the property will end up costing you a bit more because you will receive a higher interest rate than if you chose a shorter payment term.
ADJUSTABLE RATE MORTGAGES
Your other option is an adjustable rate. An ARM is an adjustable rate mortgage. What is the difference with the fixed ones? That with an ARM the rate will be fixed only for a predetermined period and then it will vary. For example, 7/1 ARM mortgages lock your interest rate for seven years, then the rate will change annually.
If you are considering an ARM, it is important that you consult with your bank or who will grant you the credit about the interest rates or if you can opt for a fixed rate option, which today is an excellent option since they are low in the market real estate.
Buying a house in the US: Applying for a government loan can be a good idea, since it has many advantages for your pocket; but you must first verify that you are a person eligible for the Federal Housing Administration (FHA loans, for its acronym in English).
The advantage is that these loans were established to make mortgages more reasonable, especially for first-time home buyers, and that they allow down payments as low as 3.5% of the sales price.
HOW TO GET MORTGAGES WITH LOW INTEREST RATES?
A low mortgage rate is what everyone dreams of. Well, since they are at historical lows, it is possible to get it. Although you do not have to run right away, because experts assure that the rates to buy or refinance your home will remain low for a longer time due to the effects of the coronavirus on the economy.
Buying a house in the US: Interest rates as of Monday, March 29. Subscribe to our weekly newsletter and participate for a $ 100 gift card each month. Receive your favorite news in your email inbox from today.
The post Buying a house in the US: Interest rates as of Monday, March 29 appeared first on Hispanic World.