A person who wants to get the best mortgage deal possible should find the best mortgage rates in Austin, TX. That is because a mortgage rate is a primary determinant as to how much money you can save (or lose to overspending) during the entire duration of the loan.
In this post, we give you some insights into ways you increase your chances of finding the best mortgage rates in Austin, TX. Consider the following:
Choosing between a fixed rate and ARM
The overall difference between a fixed rate and an ARM (adjustable-rate mortgage) can be huge. That is why you should spend time sitting down with your financial advisor or broker about the best option based on your unique case and market condition. Fixed-rate mortgages lock you into a consistent interest rate that you will pay over the entire duration of your mortgage. ARM, as the name suggests, can change over time. That means it could increase over a certain period or the opposite. So, figure out the number and act accordingly.
Decide on how much to put down.
If you pay a higher down payment, it will give you a lower loan-to-value ratio. That means, in the eyes of your lender, you are less risky for their business. With that, you may qualify for lower interest rates. If you have some extra cash to put down, talk to your broker about how you can use it to your advantage.
On whether to pay discount points
Discount points are fees borrowers are willing to pay in advance to reduce the interest rate on a mortgage. It means that you shell out thousands of dollars upfront to save a few dollars every month, which will add up over time.
One key factor to consider whether to pay points or not is the break-even period. It is dependent on the loan amount, interest rate, and the points’ cost. It is usually between seven to nine years.
Here’s the thing to consider: If you do not plan to have the loan life beyond seven and nine years, it makes sense to skip the discount points.
Making comparisons using mortgage calculators
There are several things to do for you to make an effective comparison. You should apply for a mortgage with multiple lenders, shop for loans within a set timeframe, and compare closing costs using loan estimates. In addition, you should make use of a mortgage calculator to figure out the numbers. When the figures are right before your eyes, it gets a lot easier to make a decision.
Online looking for a reputable broker to help you find the best mortgage rates in Austin, TX? Contact HomePlus Mortgage today at (512) 949-3385.
