Palm Beach, FL (PRWEB) October 04, 2012
Previously, consumers would have to query each individual lender in hopes of being offered a good rate. Now, using a mortgage comparison tool such as the one provided by Consumer Daily, homeowners looking to refinance can quickly and reliably compare rates from different lenders without even leaving the house here:
While many options are available, Consumer Daily uses two large databases of lenders to search for rates, ensuring that consumers will find the lowest rate available. The results are displayed in a easy to read list along with the contact information for each lender.
Comparing many rates found on Consumer Daily’s mortgage comparison tool for example, a 30 year mortgage would result in a monthly payment nearly $150 cheaper as compared to a 25 year mortgage, based on a $250,000 balance. For other balances, using just the mortgage amount, the rate, the borrowing term and the location, similar cost comparisons can be easily obtained. While the exact amount varies depending on the outstanding balance, the extra cash flow provided by a longer mortgage could easily be the determining factor for many consumers.
In fact, based on data from the Office for National Statistics in the UK, almost a quarter of all new mortgages are at least 30 years in length, making them almost as popular as the traditional 25 year mortgage. While the reported proportion of long mortgages in the US varies, it is known that the numbers have been increasing, perhaps encouraged by the low rates for 30 year mortgages. Recent rates have been so low that they have actually matched the lowest levels on records that date back to the 1950s. This is partially due to efforts by the Federal Reserve to spur the economy by purchasing mortgage securities.
In a recent statement, Freddie Mac reported that the average rate on a 30 year loan fell to 3.49 percent, down from 3.55 percent in the previous weeks. But how does the typical consumer access these rates? In order to save the most money, home buyers need to find the lowest rate available to them. However, banks and lenders do not always advertise their best rates, making it difficult to compare.
It is unclear how long these low 30 year mortgage interest rates will last. The Federal Reserve is committed to keeping interest rates low in order to aid the economic recovery, but this commitment may go away at any time. While rates are still low, homeowners and homebuyers have a great opportunity to refinance or purchase at a good rate. By using a mortgage comparison tool such as Consumer Daily, they can also ensure that they save the most money by finding the lowest rate possible.