Mortgage Payment Tips and Tricks- How to Get a Great Loan in a Slow Economy

Mortgage Payment Tips and Tricks- How to Get a Great Loan in a Slow Economy

Have you ever wanted to get a really great rate on a mortgage, but didn’t think you could do it? Think again. I read the other day that mortgage rates are down to between 4% and 5%, depending on the companies you work with and the credit that you keep. That’s ridiculous! Companies are hurting so bad that they’re willing to practically give away a mortgage payment, but so many people out there are terrified to buy.

Okay, so the loan rates are advertised to be really low. But what if you apply, and the rate isn’t that low because of your credit? So what! The national average being that low means that EVERYONE is going to get lower rates than ever on a mortgage. Sure, companies are probably being a little more careful about who they lend to because they can’t afford anymore foreclosures or people who buy homes that they truly can’t afford, but if you’re in a position to buy a home, regardless of your credit, you can get a better mortgage payment now than you probably ever dreamed of.

Wait a second. Don’t go running off just yet, because I’m not done yet. The rates are great right now, and make for a very affordable mortgage payment. Keep one thing in mind, though. If you apply for a mortgage, you might get two or three different options for your mortgage terms. Don’t just take the one with lowest interest. Generally, the lowest rates will be on adjustable mortgages, and you do NOT want one of those. An adjustable mortgage is like giving the mortgage lender permission to jack up your rates anytime they feel like doing so. Find a fixed mortgage. It might be one or two percentage points higher, but it will always be at that rate. An adjustable mortgage that starts out lower than the fixed rate might actually surpass it in the first five years of your loan.

Mortgage companies are probably going to tell you that adjustable loans aren’t bad. After all, what goes up can also go down. They’ll fill your head with dreams of lower rates throughout the course of an adjustable mortgage, but you shouldn’t fall for this. Adjustable mortgages tend to go up in interest much more often than they go down. Save yourself the hassle, and find an affordable mortgage payment with a FIXED mortgage loan.