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Top 10 Fixed Rate Mortgages

Todays Date: January 19, 2019

If you have even a passing interest in the topic of the top 10 fixed rate mortgages, then you should take a look at the following information. This enlightening article presents some of the latest news on the cheapest mortgages.

Lenders mortgage insurance (LMI) or private mortgage insurance (PMI) is a premium that a borrower pays to a lender. This is sometimes required to protect the lender in case the borrower defaults on the home loan. Lenders have a little leeway when it comes to negotiating to a lower mortgage rate; however there are a few factors that may influence the lender to offer a lower rate or not. Lenders can provide a potential home buyer with an estimate of closing costs. As a rough rule of thumb, a home buyer can assume that points and closing costs will be about 4% of the value of the loan.

Lenders come in several forms, from credit unions and banks to mortgage brokers. Mortgage originators introduce and market loans to consumers. Lenders base ARM rates on a variety of indices, the most common being rates on one, three, or five year Treasury securities. Another common index is the national or regional average cost of funds to savings and loan associations.

Those of you not familiar with the latest on the the cheapest fixed rate mortgages now have at least a basic understanding. But there’s more to come.

Bank of America is one of the nation’s largest, most reputable, mortgage lenders. In addition to that, they are also one of the few approved mortgage lenders authorized to offer President Obamas housing stimulus plan. Banks are obviously very hesitant to lend money on a home that is worth less than the home owner owes on it. If you are like the majority of home owners in the nation that suffer from falling home prices and would like to take advantage of today’s great interest rates there are still options out there for you. If you have a mortgage that is owned by fannie mae or freddie mac there is loan programs that allow borrowers to finance up to 125% of the value of your home.

Investors who do their homework know that bond rates have been declining. The decline in bond rates results in lower interest rates on mortgages in Canada. Investor demand for specific product rises and falls with changes in investment strategies; if demand falls enough, a change needs to be made to attract investors again. How to attract them again?

Some companies offer the best terms that include: lower down payment, lower interest rate, lower closing costs, easier to qualify, and lower chance of foreclosure. The reverse mortgages allow homeowners who meet specific criteria to receive a monthly income or lump sum payments that equal the equity in their home. The money is repaid when the homeowner dies or sells the home.

There’s a lot to understand about the top 10 fixed rate mortgages. We were able to provide you with some of the facts above, but there is still plenty more to write about in subsequent articles on sourcing the cheapest fixed rate mortgages.

About the author: MortgageSet.com provides tips and resources on the top 10 fixed rate mortgages and the cheapest fixed rate mortgages available. You have full permission to reprint this article provided this paragraph and all hyperlinks are kept unchanged.

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