Global economy plays an important role on determining mortgage interest rate in all countries. The more economic uncertainty a country is challenged, the more investors withdraw their investment on that country. Luckily, the United States benefited from the global economic uncertainty due to the Britain’s decision to exit the European Union. The Brexit forced investors to exit their investment in the E.U and transferred it into U.S Treasury, which lead to the decrease in home loan interest rates today.
The best time for Americans to secure a home loan plan
Americans are lucky to have a near historic lows on home mortgage interest rates. You can now apply for home loan plan with an average 30-year fixed mortgage rate at around 3.56 percent. This is the best time to secure buy your first home or thinking on investing for another property since the average mortgage rate last year was above 4 percent.
Thinking on secure a mortgage with shorter loan plan period? You too now can get as low as 2.98 percent of interest rate on your loan for a 15-year fixed lending plan. So, what are you waiting for? What is the catch?
Terms to get the lowest interest rate home mortgage
Despite the attractive marketing interest mortgage rate, there are things to consider. After the economic bubble in 2008, banks are now more vigilant. They do not give loans just to everyone. Some criteria are required by banks during home loan application process. One of which is to make sure that you have a high credit scores, meaning that you always pay your bills and debt instalment on time. Secondly, it is important for you to be able to pay the 20 percent down payment. In general, down payment is the percentage of money you need to pay to the bank from total purchasing price.
However, there is still a silver lining to get the best home loan interest rates today for you who cannot afford the 20 percent down payment or those of you who are facing problems with debt. For you who does not have savings to cover 20 percent of down payment, it is still possible to get a loan if you are willing to pay for private mortgage insurance that will protect you when you are incapable to pay the mortgage instalment. Lastly, for those who are in debt situation, you might want to apply for smaller loan, while focus to increase your income and pay off all of your monthly credit card balance.