Mortgages come in many forms. The most popular are the 30-year, fixed type, but you can get a 15-year fixed rate as well as a number of adjustable-rate products. In addition, you can get an FHA or VA home if you qualify. For more information on Mortgages, click here.
If you qualify for an FHA loan you might be able to put down only 3.5 percent on your mortgage, even if you have a credit score as low as 580. If you qualify for a VA loan, you won’t have to make a down payment, you won’t have to pay for private mortgage insurance and you’ll even get competitive rates.
When it comes to mortgages, terms and rates can vary wildly, so it pays to shop around. The current, average mortgage rates as of October 2017, according to Freddie Mac, are:
30-year fixed: 3.94 percent
15-year fixed: 3.25 percent
5/1-year adjustable: 3.21 percent
With so many choices, it can be mind-boggling to pick which mortgage is the best for your financial situation. Because your credit score can affect the rate you get on a mortgage it’s crucial you build your credit as much as you possibly can before you start applying for home loans.
The better your credit, the better loan you’ll likely be approved for — and the more money you can save over the long run. For instance, if your score is between 625 ad 650 you might get a rate of 3.88, as opposed to a rate of 3.62 for a score of between 725 and 750, according to The Washington Post.