Things You Never Knew About Your Mortgage Rate
Your mortgage rate is one of the most important things about you financially speaking. It determines how much you pay on a monthly mortgage. That is a critical statistic when it comes to measuring up one’s budget. Given this, it is nice to know some of the hidden facts that may impact a mortgage rate.
Mortgage Rates Are Always In Flux
There is not one set mortgage rate at www.loans.com.au/mortgage/fixed-rate-mortgage. In fact, two people with identical credit scores could end up with a different mortgage rate depending on when exactly it was that a person applied for their mortgage. This is because the rates are constantly in flux.
A Large Down Payment Is Not Necessary, But It May Be Helpful
For a long period of time, the industry norm was to have a person put down twenty percent of the cost of their home in order to obtain a mortgage, but those days are long gone. There is no reason to lay down that kind of money to get a mortgage anymore.
It is possible to get a mortgage for as little as 3.5 percent down or even less in some cases. While it is possible to get a mortgage for a discounted rate like this, it might not be recommended for the average person. The more that someone puts down on their home, the less that they will end up paying in interest on their mortgage over time.
Self-Employement May Put You At A Disadvantage
There can be some big disadvantages to being self-employed in general. One of those downsides is that it is much harder to get a mortgage. The mortgage rate offered to someone who is self-employed tends to be higher because it is more difficult for the lender to identify exactly how much money that person makes or how they will be able to afford to pay for the home loan that they have applied for.
The self-employed person will need to bring in as much documentation to show that they are a responsible user of credit if they want a good mortgage rate. The lender is going to comb through everything a little more closely in these cases.
Mortgage Rates Remain Near Record Lows
It is so critically important to realize that the mortgage rate you can get today may well be among the lowest that you will ever see in your lifetime. That’s right, the rates that one can find today are historically low in comparison to what they usually go for. Thus, no matter what obstacles may be in your way at the moment, it still might be the right time to take a look at getting a mortgage if this is something you have been itching to do anyway. Waiting any longer may result in you paying a higher interest rate at a later date.