Seattle, WA (PRWEB) March 27, 2013
Mortgage rates are an incredibly important thing for people to consider when looking for a home. Mortgage providers differ in the services they provide and the terms they lay out. Moreover, interest rates fluctuate daily. Many people don’t know how to compare mortgage terms, even if they could get the information from all the various lenders. In an effort to combat the confusion that can set in when searching for mortgages, Rate State has distributed a guide on comparing mortgages and refinance options to find the cheapest rate.
Most of the problem when comparing mortgage rates, Rate State asserts, comes from simple ignorance about the mortgage industry. The ins and outs are complicating, to say the least, and there aren’t very many lenders willing to sit down and discuss it in detail with a prospective home buyer. Many people, therefore, are left in the dark. Are all mortgages the same? Do they have different rates, different terms? Rate State answers those questions in their guide.
The first thing people should do to get an excellent mortgage rate, Rate State suggests, is to compare the options available to them. There are dozens of mortgage providers out there, and the best way to get the cheapest rate is to have as many options as possible.
Second, people need to learn at least a little about the mortgage industry, the types of mortgage available, and what to expect from each type of mortgage. Rate State shows that there are several types of mortgage, but the most frequently used ones are fixed rate mortgages and adjustable rate mortgages.
Fixed rate mortgages are loans with a set- i.e. “fixed”- rate across the mortgage term. The loan can be anywhere from 10 to 30 years in length, with a low entry cost- or “down payment”. The payments don’t alter over the course of the mortgage, with increasingly more money being devoted to paying off the mortgage each payment, and less money being devoted to paying off the interest accrued each year.
Adjustable rate mortgages are loans with interests that vary- or “adjust”- over the course of the loan term, based on the current market rate. As they typically feature a lower interest rate than fixed rate mortgages, they can be very attractive; however, an increase in the current market interest rate will mean an increase in monthly payments for the home owner.
All this information and more can be found at http://www.ratestate.com/, along with Rate State’s free online mortgage comparison tool. Rate State offers excellent rates from top-of-the-line lenders, available at no charge for anyone’s home buying needs.