June 2nd, 2018 10:43 AM by Jackie A. Graves, President
applying for a home loan or already have one, it’s always a good idea to keep
your eye out for ways to save money. For some borrowers, locking in rates now
while they’re still low could mean substantial savings down the road.
Here are our
best mortgage tips for June.
Find out your mortgage rate
About 3 in 10
(29 percent) of homeowners don’t know their mortgage rate or wouldn’t say,
a recent Bankrate survey finds.
If you don’t
know your mortgage rate, this is a good time to find out. As mortgage rates
rise, it’s critical to know your mortgage rate to determine whether it makes
sense to refinance your loan or switch from an adjustable-rate mortgage to a
refinancing means getting a new mortgage with new terms, which can lengthen the
amount of time you pay on your loan. So if you have only a few years left on
your mortgage, saving a few points on an interest rate might not make financial
sense. Conversely, if it’s a recent mortgage and you stand to save a
significant amount of money, refinancing is likely a smart choice. Once
you find out your mortgage rate, use Bankrate’s mortgage
refinance calculator to determine if you’d benefit from a
Shop around and lock a rate
The days of
ultra-low mortgage rates are quickly fading, but favorable mortgage rates are
still available. Bankrate’s latest survey of large
lenders finds that the average rate on a 30-year fixed mortgage
is 4.64 percent, up from 4.09 percent a year ago.
If you’re on
the fence about locking in a
rate, it’s a good time to secure a low rate — before rates head
lock, check your credit score. Borrowers with the highest credit scores will get
rewarded with the lowest rates, but that shouldn’t deter people with average or
even below-average scores. If you have a low credit score, start
rate-shopping at your local credit union or community bank. It’s also a good
idea to compare mortgage
rates on Bankrate.com.
Be sure to
get a clear explanation of your lender’s rate lock rules. For example, if rates
fall, will you be able to change from an adjustable-rate loan to a 30-year
Make sure your
rate lock is long enough to cover the entire homebuying process. So if you
think your closing will take longer than a month, talk to your lender about
locking in a rate for that period without paying fees.
mortgage is more than the value of your house, you still have time to refinance
through the Home Affordable
Refinance Program, or HARP. There are no underwater limits, which is a great
benefit for people whose homes have fallen in value.
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