San Diego, CA (PRWEB) April 30, 2014
LoanLove.com is a borrower advice website that empowers home owners with first class knowledge, valuable resources and connections to top rated industry professionals. With in-depth information presented in an easy to understand format, which both experienced home owners and new loan borrowers can benefit from, it is easy to see why Loan Love has become a trusted destination for current news and expert loan advice. Recently the website released a new article that takes a look at the average home loan rates 2014 mortgage borrowers have available to them, and gives some insight into what factors impact the final rate that they will have to pay.
This new article from Loan Love titled, “Average Home Loan Rates For Hopeful Families in 2014” says, “If you are hoping to settle your family into a new home this year, you’ve probably already been monitoring interest rates, as you get your financial house in order. As you do so, keep in mind that a number of factors will affect the rate you can expect to get on your new mortgage, some of which you may be able to impact and some you will simply need to deal with as you go forward with your new home purchase. Mortgage interest rates can fluctuate daily, depending on domestic and international economic factors. The LoanLove site provides you with the current rates, as well as recent historic rates, so that you can monitor trends.”
Loan Love explains that it is important for loan borrowers to keep in mind that even experienced forecasters cannot predict with 100 percent accuracy what mortgage interest rates will look like this year. As a matter of fact, many experts warned of a slow but strong move upwards for rates at the beginning of this year, but as it turns out rates have only slightly increased thus far. The article also looks at some of the factors that can affect what kind of rate a mortgage borrower would be able to get. For example, a bigger down payment will reduce the total interest on a mortgage. The article notes that while some may not have the means to put down a large down payment, it may be worth it to look into whether or not a close relative might be able to contribute, as the savings from a lower mortgage rate can be substantial.
The borrower’s credit score will also have a great impact on the rate they are given for their home loan. Loan Love says, “The impact of your credit score on your home loan is fairly straightforward: the better your score, the better rate you will receive. Typically, borrowers with credit scores of 740 and above can qualify for the best rates from mortgage lenders. Those with credit scores below 620 may find it extremely difficult to qualify in today’s more-restrictive lending environment.”
Lastly Loan love gives an example of how all these factors pull together to determine how much a loan borrower will pay on mortgage interest. The article says, “To best illustrate how different criteria impact your loan, calculate your payments under several scenarios using the current interest rate: Let’s consider a $250,000 house—your dream home. If you could put 3 percent down, you would need to finance $242,500. Based on current interest rates of 4.26 percent and a 30-year mortgage, your monthly payment would be $1,228.71. Taking that same house, let’s say you put 10 percent down. Now you are looking to finance $247,500 with a 30-year mortgage. Using the same interest rate, your monthly payment drops to $1194.37. It may seem like a few dollars a month is no big deal, but consider taking those few dollars a month over the lifetime of your loan and you find you are saving $12,362”
For more information on this subject, click here to read the full article on LoanLove.com.