Did you know getting a home loan (mortgage) can be tricky? Mortgage rates, which is how much interest you pay, are changing all the time. This article explains how to get the best rates!
- Buying Discount Points: Paying extra money upfront can lower your interest rate over time. It's like getting a discount on your total loan cost.
- Interest Rate Buydown: Some sellers or builders help lower your interest rate for the first few years of your loan, making payments smaller at the start.
- Adjustable-Rate Mortgage (ARM): An ARM starts with a lower interest rate but can change later. It’s a gamble; your payments might go up!
- Shorter-Term Mortgage: A 15-year loan instead of a 30-year loan will likely have a lower interest rate but higher monthly payments.
- Assumable Mortgage: This is when you take over someone else's existing mortgage. It's rare, but you might get a lower rate.
| Fact | Number |
|---|---|
| Average Mortgage Rate (current) | 6-7% |
| Percentage of homebuyers buying discount points in 2023 | 58.7% |
| Lowest rate ever (30-year loan) | 2.65% (in 2021) |
| Percentage of homeowners with mortgage rate below 5% | 73.3% |
