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Control your Kansas mortgage rates and payments

Posted by  on Aug 05, 2010
 
Most potential Kansas home buyers are keeping close watch over interest rates in the hopes of finding a good Kansas mortgage rate. The mortgage interest rate on a home in this state does have a serious affect on monthly payments, but this isn’t the only factor that changes the amount of those payments. The mortgage rate on Kansas mortgage loans is probably the most important factor in monthly payment amounts, though, so it’s always a good idea to be aware of changes in these rates.

All home buyers in the state would like Kansas interest rates to be as low as possible, simply because lower interest rates translate to increased buying power. There are many factors that will affect your Kansas interest rate and monthly payment, though. There are some things you can do to keep interest and payments low, but some factors are out of the home buyer’s control.

Kansas home loan shoppers have no say over interest rates that are controlled by the federal government. The Federal Reserve adjusts interest rates to keep inflation down, and to economy a strong economy. The interest rate adjustments made by the Federal Reserve are one of factor that is out of the hands of Kansas home loan shoppers, so there’s no point getting worked up about them.

It is wise to place your focus on the interest and payment factors on your Kansas mortgage that are within your control. You should first decide whether you prefer a fixed-rate mortgage or an adjustable rate mortgage loan. An adjustable rate Kansas mortgage will start off with a low Kansas interest rate, but the interest rate will rise or fall with the adjustments made by the Federal Reserve.

A fixed rate Kansas mortgage usually has a slightly higher interest rate, but it remains at that rate for the duration of the mortgage repayment period. This protects homeowners from drastic changes in interest rates and allows them to plan for the future with a certainty.

Kansas home loan shoppers should also consider any discount fees for the mortgage loans they are applying for. You may also have to pay “points” in order to lower your interest rate. Paying one point is equal to paying 1 percent of the total amount borrowed for the Kansas home loan. If you borrow $100,000, for example, paying one point would cost you $1,000. The discount as a result of paying points varies from one Kansas mortgage lender to another, but they’re usually around a quarter of a percentage point for each discount point.

Another option you can control in your Kansas mortgage is the length of the mortgage loan. You can usually choose a 15 year mortgage or a 30 year mortgage. The 15 year Kansas mortgage will come with a lower interest rate than the 30 year mortgage. The monthly payments will be substantially higher as a result of paying your loan back over a much shorter term, but you will pay less money over time.

The best thing you can do when shopping for a Kansas mortgage rate is to stay on top of your credit report. A better credit score ensures the best Kansas interest rates and mortgage loan terms. This is one factor that is very much in you hands.

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