Stay on Top of Market Trends to Easily Compare Fixed Mortgage Rates

Refinancing? Buying a house? Learn how to compare fixed mortgage rates by staying on top of today's market trends. Here's a bonus! You can do this without divulging private information or giving out your email address.

More than ever, awareness of trends in national mortgage rates is crucial to getting affordable house payments. But dependence on big banks to objectively report the ups and downs in the marketplace might not be your savviest plan.

What you really need is an independent source of current interest rates and discount points! How else can you be assured the quotes you're receiving are fair? Tracking interest rates and points will also build the confidence you need to lock in a mortgage rate!

Kate, Thank you for the marvelous service you are providing to mortgage shoppers everywhere! -- Triesta B. from St. Paul, Minnesota

Using Current Market Trends to Compare Fixed Mortgage Rates

If you're thinking that you don't have time to study rates and trends, think again. It only takes a few minutes out of your day to visit my Mortgage Rate and Trend Report that I publish on my blog each Thursday morning.

Tip: Sign up for Focus on Finance, a Super Kate newsletter, for a reminder to read my weekly Mortgage Rate and Trend Report.

As you follow my report, you'll begin to develop a feel for market trends. You'll grow familiar with what causes the ups and downs in interest rates. Then the next time you go to get a mortgage, you'll automatically know which lenders are pricing fairly as you shop for rates.

To determine which type of fixed rate is best for you, read about the trustworthy 30 year fixed, the interest-blaster 15 year fixed, and the hybrid 5/1 ARM.

Paying Discount Points to Decrease Monthly Payments

When you are shopping for a new home loan, you should also understand the relationship between discount points and your monthly house payment.

Simply put, discount points are prepaid (or upfront) interest. Paying for points will lower the amount of interest you pay over the term of your loan. A discount point costs 1% of the total amount borrowed. Each point lowers the rate by roughly .125 to .25% and varies according to the market.

Here's an example...

  • You borrow $350,000 at 4%.
  • You pay one point which costs $3500.
  • Your rate is lowered to 3.75%.
  • Buying the point lowers your house payment about $50 a month.

Be sure to compare the cost of points to the amount you save in payments. Go here to learn more about the relationship between mortgage rates, closing costs, and discount points.

True, buying points will lower your monthly house payments. But realize this! Before you break even, your accumulated monthly savings must equal the upfront cost of the points. Go here to learn about calculating a break-even point after buying points.

What Is Today's Mortgage Rate?

Can you guess which of the following 3 questions homeowners ask loan originators most frequently?

  1. How do I get my credit score?
  2. What is today's mortgage rate?
  3. Should I refinance?

You're right if you guessed, What is today's mortgage rate? It's the most frequent inquiry from homeowners to loan professionals. No wonder! Comparing mortgage rates is essential to securing affordable monthly house payments.

Calculating Monthly House Payments

Would you like to calculate a mortgage payment using today's interest rates? Use my free mortgage payment calculator.

This mortgage calculator is easy to use and allows you to print a personalized amortization schedule. Go ahead! Plug in an interest rate and see how much you can save every month.

Ask Kate

What if you could ask a mortgage insider anything you wanted regarding refinancing or buying a house? Now you can!

Ask Kate is specifically designed to answer your questions and create dialog regarding real estate and mortgage financing.

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