For the second straight week, long term mortgage rates dropped. Lower rates have fallen and continue to fall to spark home sales. Fixed rate mortgages dropped .06% in the past week. Long term loan rates reached the highest its been in 7 years reaching 4.66 percent. That is significantly higher than last year which was 3.89 percent. Rates dropped .04 percent for a 15 year, fixed rate loan. The drop in rates is in hope to set off home sales. Rising home prices, small inventory of affordable homes, and higher mortgage rates are the cause of the plateau in home sales.
What Mortgage Works Best for You?
A 30 year loan has steady and predictable payments paid off for 30 years. This allows someone more time and lower payments, however, includes more interest. This also has a higher interest rate percentage than any other mortgage loan.
A 15 year loan also has steady and predictable payments that are to be paid off in 15 years. Despite having higher payments, there is less interest and a lower interest rate.
A VA loan is for Veterans or Active duty military. In most cases have no down payment, have competitive rates, and can be fixed or adjusted.
A FHA loan has less strict credit score requirements and can have a down payment as little as 3.5 percent. This is beneficial for those with lower credit scores or who do not have a sizable down payment to put down. This can also be fixed or adjustable.