The simplest answer is to check out one of those comparison websites where you can see the range of mortgages loan rates from various lending institutions or banks. Latest market reports have seen the tendency for mortgage loan rates to be definitely on the decrease. Then again the stronghold of strict policies as set by the majority of lenders may prove too daunting for many borrowers to even try to tear it down in the first place. But no need to despair as there are some ways to at least pre qualify for a mortgage loan with low rates.
Are you coming from a place of low credit scores and little hope of being on the winning end? You will have to face the following. With no job stability, there is almost no hope unless a guarantor or co-signer can join you. Bear in mind that these terms are not interchangeable despite a widespread misconception. A guarantor will usually be a parent or a relative with enough earning ability to guarantee the mortgage loan for their offspring should their credit history be insufficient.
The person in question will have to disclose the whole credit standing along with their income and sources of any other funds. This is why it is usually parents that undertake that role and have no rights as to a property title. After some time when a graduate secures a job and establishes some credit history, it is possible to waive the need for a guarantor. A co-signer, on the hand, retains a property title while providing the necessary financial backing that at times may be problematic. In the case of a couple to avoid a property foreclosure in case of business
bankruptcy one of the people may decide to be a guarantor instead of a co-signer. Even then it is advisable to shop around for a home loan with low rates.If your credit history is lacking that may also mean there are hardly any funds in your savings account to be made towards a down payment obligatory when it comes to a mortgage loan. The greater the equity (that means your share in the property value) the better the terms a lender can offer. Unfortunately, you may need as much as 20% down payment with regular loan lenders and banks. If the house value falls, you will be on the losing end also if wanting to refinance.
You may also wonder whether fixed rate or adjustable rate mortgage loans would be preferable. In the US, the majority of fixed rate home loans are more popular. Fixed rate mortgages are stable throughout the life of the loan but may be higher in general. With adjustable rates the borrower faces low rates for a specific period that then are adjusted and increase accordingly depending on various economic factors. The system allows you to buy points that are a sort of prepaid interest that lower the rates but if that works to your advantage remains to be seen or calculated. Depending on how long you want to hold on your property you may wait to recoup the money in savings.
Another way to secure a mortgage loan with low rates is to review the FHA criteria and policy for borrowers. The agency offers insurance on mortgage loans for lenders that grant them which is a form of government help to those with any financial difficulties. This way your eligibility for low rate mortgage loans, if you qualify according to the FHA guidelines, may be ensured.