The first thing you’ll want to do if you’re planning on buying a home is to compare mortgage interest rates. If you’re a first-time home buyer and you have questions about what a mortgage rate is and/or how it can impact your purchase, call Blue Spot Home Loans today and we’ll be more than happy to answer your questions. Our team of experts is committed to making the mortgage application process as easy as possible, from start to finish.
Mortgage Rate: Definition
Simply defined, the mortgage rate is the interest you’ll pay on the loan. There are a number of things that are factored into what the interest rate will be and these things include (but may not be limited to) the yield on the 10-year treasury note, the Federal Reserve, and your FICO score. When you make your monthly payment, a portion will be used to pay down the loan’s balance and another portion will be used to pay the interest that’s owed on the loan.
Factors to consider when choosing a lender
Interest rates can vary from lender to lender, but interest rates aren’t the only thing you’ll want to take into consideration. You’ll want to research the reputation of the lender, if they have the ability to help ensure the lending process goes smoothly, and whether there are other hidden costs and fees that they’re not communicating to you up front.
Interest Rate and Annual Percentage Rate are not one in the same
The interest rate is the rate on the loan—it does not take closing costs into account. The APR, on the other hand includes the interest rate, closing costs and/or closing credits. The APR will give you a more apples-to-apples comparison across different types of loans, if all the costs remain the same.
Call Blue Spot Home Loans today
Regardless as to whether your buying your first, third, or tenth property, Blue Spot Home Loans is here to help. Call today to learn more about our competitive low mortgage rates.
- The sample payment listed does not include insurance, taxes, or assessments. Private Mortgage Insurance (PMI) is required for all conventional loans in which the LTV is greater than 80%. Mortgage Insurance Premium (MIP) is mandatory for all FHA loans.
- Listed mortgage rates are based on a 40-day rate-lock period.
- The listed annual percentage rate (APR) is the cost to borrow, expressed as a yearly percentage. For mortgage loans (this excludes home equity loans) the APR includes the interest rate plus other fees or charges, which may include things like origination fees, discount points and mortgage insurance. For home equity lines of credit, the APR is only a reflection of the interest rate. The APR can help you compare the cost of mortgages between lenders.
- The listed estimated closing costs should not be used in place of a loan estimate. A loan estimate, which you will not receive until you apply for a loan, will include your estimated closing costs. The amounts listed above should only be used as estimations based on the state selected. This is not a commitment to lend or a mortgage loan approval. The actual costs, fees and monthly payment on your specific loan may vary and may also be subject to city fees and/or county fees along with additional other costs and fees not currently specified.
- The listed mortgage rates are based on a number of assumptions including but not limited to the credit score of the borrower. Actual rates could be higher or lower based on your credit score and other factors.
The rates below are current as of today available through Blue Star Home Loan’s online division.
Remember: mortgage rates can vary from state to state and they’re subject to change without notice. Select a product from the below list to view important information about disclosures, payments and assumptions.