Mortgage rates mixed for week of December 20, 2010
Rates for fixed-rate mortgage (FRM) loans fell last week. HSH Associates reports that average combined rates for a 30 year FRM fell by 3 basis points to 5.15 percent, while rates for a 15 year FRM also dropped by three basis points to 4.51 percent. Rates for a 5/1 adjustable rate mortgage (ARM) loan ticked upward by one basis point to 3.89 percent.
Many home buyers shop for a home before finding their mortgage loans, but putting the cart before the horse can cost in the long run. If buying a home is among your New Year resolutions, here are some tips for making it happen:
- Research market trends. Keeping tabs on market trends in the area where you want to buy a home help determine affordability and how much you'll need to borrow for a mortgage loan.
- Monitor mortgage rates. Watching current mortgage rates is useful for evaluating and comparing mortgage quotes. Don't focus on mortgage rates alone, as mortgage loans typically include additional costs including origination fees, and "points." One point is equal to one percent of your mortgage amount.
- Work with real estate pros and mortgage lenders. Consulting a real estate agent or broker specializing in the area where you want to buy assists with determining home pricing trends and other information important for deciding which home to buy. Real estate pros and mortgage lenders can also help with finding home financing solutions such as time buyer assistance programs.
- Make a plan and stick to it. Don't be pressured by real estate agents or mortgage officers. Knowing in advance how much you can afford to borrow for a mortgage and paying the additional costs of owning a home can prevent l problems later. If something about a mortgage quote or home purchase strikes you as suspicious, or too good to be true, consider other alternatives.
Our live database of current mortgage rates can help you find the best mortgage rates in your area.
