One of the factors that help you decide on which mortgage loan to apply for is the interest rate. A good one helps save money, increases the rate at which you build equity in your home, and cuts down the size of your monthly payment. Therefore, you must compare mortgage rates in San Antonio, TX, to get the best one available. With that said, familiarizing the following important mortgage concepts can help you make a better decision.
It means shopping around for quotes from multiple prospective lenders. With this, you cannot just get the most favorable deal available but also the terms of the loan. Comparing mortgages has never been this easy with the availability of information online – easy access to comprehensive information regarding mortgage options.
Credit score as a primary driver of mortgage rate
Lenders consider credit scores one of the most reliable predictors of whether or not a borrower can make prompt payments. It is a conventional view that the higher the score, the less risk you pose to a lender – and therefore, the lower mortgage rates in San Antonio, TX, you pay.
Mortgage rate lock
A mortgage rate lock is a way to freeze the interest rate. That means your lender can guarantee (with a few exceptions) that an offered mortgage rate will remain unchanged after a certain period. With that, you, the borrower, do not have to worry about rates going up between the time they submit an offer and when they close on home (make sure you can discuss this thoroughly with your broker so that you can take advantage of it)
These are loans that Fannie Mae or Freddie Mac, the big government-sponsored enterprises, do not guarantee. In other words, these are loans available through private lenders, such as banks, credit unions, and mortgage companies. These mortgages play a crucial role in the mortgage lending market.
Online looking for a reputable broker to help you find the best mortgage rates in San Antonio, TX? Contact HomePlus today.