Mortgage rates can vary for a number a reasons, like inflation, economy growth and the housing market condition, so it’s normal to check the rates often. If you are planning to buy a home in 2018, we can give you some strategies for the mortgage market that will help you find the lowest rates. In the long run, a lowest mortgage rate can save you thousands of dollars, so it’s highly recommended to find one.
2018 Mortgage rates
The mortgage rates in 2018 are in the 4 – 4.5% range. Sun West mortgage rates have remained low in recent months and, according to economists, are likely to remain that way throughout 2018, with small fluctuations. There will be weeks when the rates go up a bit and then adjust again.
The average rates in April 2018 are the follows:
- 30-Year fixed: 4.42%
- 15-Year fixed: 3.87%
- 5/1 ARM: 3.61%
The predictions for 2018 mortgage rates have been already met. Economists are optimistic, because a hold is expected in the mortgage rates.
2018 Mortgage strategies
Trying to buy a home in 2018 is not as hard as it sounds. The first thing you need to have in mind is shopping for the lowest mortgage rate. This is a strategy for the long term, because a 3 or 4 percent more means a few thousands of dollars over the life of the loan, so a shopping plan is almost necessary if you want to save your money.
We can help you to give you an idea of the necessary strategies when buying a home, but it is up to you to investigate more about it.
You need a higher credit score
Your credit score is the first thing every lender will see when you request a mortgage. You will need at least a credit score of 640 to be considered for a mortgage, but a score of 740 puts you in the best spot. A higher score helps you qualify for a lower mortgage rate.
Save money with a shorter loan term
A fixed rate home loan can give you some “safety” with your payments, lowering the amount that you need to pay monthly, but taking the risk of choosing a short-term mortgage can save you a lot of money. Why? Because you pay less interest per month.
Don’t stick with the first lender you find
Try different options before choosing a lender. Some financial institutions offer lower mortgage rates that others for a short period of time. This promotions helps those institutions to get more homebuyers, and help the buyers save money in the long run. So, keep an eye for promotions and compare the rates of the different lenders.
A larger down payment will help you
If you make a larger down payment, you appear as a less risky to your lender. This translates into lower Sun West mortgage rates.
Do your research
You will need to answer a lot of questions to get an accurate rate quote for you, so be prepared, because you will need to know a couple of things. Also, you will need to compare interest rates and negotiate your best deal.