But there are still ways to get the lowest-possible rate. We’re stretching your dollar with three tips to help you get a great deal.
It’s getting more and more expensive to borrow money for a home. According to bankrate.com, the average APR on a 30-year fixed rate mortgage recently topped 5% – that’s the highest it’s been in seven years.
Still, experts say mortgages are relatively cheap by historic standards.
David Greene, “Bigger Pockets” Podcast Host & Real Estate Investor: “When it comes to the decision of buying a house you shouldn’t let interest rates make a decision that big for you.”
Both real estate investors and home loan officers say don’t let the rising numbers scare you.
Ken Folds, Home Loan Officer, “It’s more of a psychological impact to people than it actually is an impact on their finances.”
So, how do you find the lowest-priced loan possible? Experts say follow these three tips –
1) Find an experienced mortgage broker.
David Greene, “Bigger Pockets” Podcast Host & Real Estate Investor: “A mortgage brokers job is a shop your loan to every lender they can find and find the one with the most competitive rate and the lowest closing costs.”
Ken Folds, Home Loan Officer: “It’s important to talk with someone that can help you through the different options to make sure you get the best program that really fits your needs.”
3) Shop around for lenders! Don’t stop after the first lender and look at estimates online to find the best deal for you.
David Greene, “Bigger Pockets” Podcast Host & Real Estate Investor: “If you’ve already decided to buy a house you shouldn’t waste time because interest rates are going to be going up.”