Finding the Best Mortgage Rates
Understanding your mortgage loan options before you start visiting open houses and making offers to home sellers can help you determine what kind of loan you want to secure, how much home you can afford to buy and how much you should budget for your monthly mortgage payment. With a clear picture of your mortgage loan borrowing power, you should be able to confidently purchase a home in Florida.
Mortgage Loan Types
The two most common loan types are fixed-rate mortgages and variable-rate mortgages. Both of these loans are commonly available at banks and other financial establishments.
- Getting a fixed-rate mortgage means your loan rate will stay exactly as it is for the entire life of the loan. The advantage of a fixed-rate loan is that you will never have any surprise increases on your monthly mortgage payment as a result of rising rates. The disadvantage of fixed loans is that if interest rates decrease from what they were when you signed your loan, you might be unable to take advantage of the savings unless you refinance.
- Having a variable-rate mortgage means your interest rate can change with financial market fluctuations. With variable-rate mortgage loans, the borrower assumes the risk of paying more if rates increase, but they can also benefit when mortgage rates decrease.
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GOBankingRates has the tools and resources you need to confidently find a lender with the competitive mortgage loan rates that can make your home purchase and monthly payments more affordable.