Today's Rates From Loan.com
If you are looking for a mortgage loan in Texas you have a number of good options. There are several things you will need to know to find the mortgage loan that is right for you. You will need to understand the costs associated with a mortgage loan, as well as the rates and types of mortgage loans available in Texas.
Based on the most recent data, mortgage rates for thirty year fixed mortgages are at historic lows, and the amount of points charged varies per lender, based on many factors including the loan amount, longevity of the loan and your credit score. There are various types of loans available, including fixed rate mortgage loans, adjustable rate mortgage loans (ARM), home equity loans, home equity lines of credit (HELOC) and more.
It is very important to consider the type of loan you need to meet your current financial situation and consider your future needs.
Mortgage Refinancing in Texas
In some instances, refinancing your current mortgage loan can help you lower your mortgage payment. Borrowers can borrow against the equity built up in their home at a lower cost than they can from other sources. Like most mortgage interest, another benefit to mortgage refinancing is that if you pay off credit cards, the interest you pay will now be tax deductible.
Fixed Rate Mortgage
This is your parent's mortgage loan. Prior to the internet, when most people stayed at the same job until retirement and families weren't as mobile as today; this loan was the epitome of stability. In this loan, the interest rates and payments stay the same for the term of the loan.
The 5/5 & 5/1 Adjustable Rate Mortgage
This mortgage type offers a stable payment and interest rate for the first five years. In the sixth year the interest rates, and therefore the payments, are adjusted every five years for the 5/5 arm and every year for the 5/1 arm.
The rates and points on each mortgage loan will vary. As with any major consideration, it is imperative to consider all of your options and utilize all of the resources available to make an educated financial decision. Some important points in finding the right loan for you are as follow:
- Know your interest rate vs. the interest rate of your potential new loan.
- Shop for rates by internet and newspaper, but most importantly, visit some lenders and get some information in writing regarding interest rates, points, fees and any other charges.
- Do the math - just because your new interest rate is lower than the old one doesn't mean you'll save money in the long run.
- If you are thinking of refinancing but thinking of moving within 1 to 4 years, be sure that getting a new loan or refinancing your current one will give you the most value.
- Look carefully at any prepayment penalties on your current loan and factor in any tax advantages or disadvantages.
Loan.com is an excellent resource when your goal is to save money and minimize costly errors that could affect you now and in the future. With an assortment of free loan calculators, an in-depth explanation of the Borrower's Bill of Rights and even a Loan Analyzer tool, Loan.com is the first and last stop for the borrower that wants to be informed and up-to-date before choosing a loan. The Rate Directory on Loan.com allow consumers to search for mortgage rates while at the same time flagging those mortgage lenders that abide by the Borrower's Bill of Rights and are in good standing with the Better Business Bureau. You should also use RealEstateABC's ABC Values™ tool to check what the current home values are in Texas.