San Diego, CA (PRWEB) May 01, 2014
LoanLove.com is a borrower advice website that is dedicated to helping borrowers find home loans that they will love. With first class information, valuable resources and connections to top rate industry professionals, the website has quickly become a trusted destination for current news and expert loan advice. A recently released article from Loan Love continues to provide borrowers with all they will need to find the best loan scenario for their situations by talking about the average mortgage rates today and helping borrowers understand the factors that influence how much they will pay when it comes to mortgage interest.
This new article from Loan Love titled, “Average Home Loan Rates For Hopeful Families in 2014” explains that those who are hoping to settle their families into a new home this year have probably already been monitoring mortgage interest rates as they work towards getting their finances in order before applying for a home loan. Loan Love says that as borrowers do this, they should keep in mind that there are a number of factors that will affect the rate that they can expect to get for their new mortgage, some of which the borrower may have the power to influence and some of which borrowers will just need to deal with as they move forward their new home purchase.
The Loan Love article says, “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. It’s important to keep in mind, however, that even the most experienced forecaster cannot say with 100 percent accuracy what interest rates will do this year. In fact, many experts predicted rates would begin a slow but steady climb upward at a strong pace than the slight increases seen thus far.”
Loan Love goes on to explain that some of the factors that influence a borrower’s mortgage rate which they have an actual hand in controlling are:
- Their down payment size, and
- Their credit score.
As the article mentions, a higher down payment will result in a reduced mortgage rate, which could significantly save the borrower money over the course of their loan. Loan Love says, “If you are serious about home ownership, you have probably been putting money aside or perhaps you’ve recently come into a sum of money to put down toward a new home. In addition to what you’ve saved, however, consider whether a parent or other close relative may be able to contribute. You may also want to look into the potential of taking out a loan against your 401K or pension plan to increase the down payment you have available for your home purchase. This option has become more and more popular as zero down payment mortgages became few and far between. If you do go the route of your 401K, there are several advantages. Your credit score is not affected and you pay interest on the loan to yourself. In addition, the loan is not considered a part of your debt.”
Loan Love further explains that a person’s credit score also has a great impact on what mortgage rates are available to them. It says, “To understand just how your score can impact a loan, consider that the differences in monthly payments for someone with the highest possible credit score versus someone with the lowest acceptable score is nearly $300. Now take that $300 per month over a 30-year mortgage and you will find that it adds up to a difference of more than $100,000.”
The article ends by giving an example of how all of these factors pull together to determine what mortgage rates a loan borrower should expect and says, in summary, “There are a number of factors that will determine how favorable of an interest rate you are able to obtain on your mortgage. While you cannot control all of the criteria that your lender will consider, understanding the various contributing factors can make the loan process less of a mystery.”
For more information on this subject, click here to read the full article on LoanLove.com.