Frequently Asked Questions about Low Mortgage Rates

Here are the answers to the most commonly asked questions about low mortgage rates.

What are low mortgage rates?

Low mortgage rates refer to the APR, or annual percentage rate, of a mortgage loan. Low mortgage rates tend to offer more competitive APR's than traditional mortgages. Low mortgage rates can make homeownership a possibility for buyers on a budget or can enable other buyers to purchase more home for less money.

How do I apply for low mortgage rates?

Applying for low mortgage rates is easy. Just click "apply now" anywhere on our site to fill out our free application for quotes on mortgage loans. The application will take you under five minutes to fill out, and we will supply you with at least four quotes on loans with low mortgage rates from major lenders. You can view and compare these quotes for no charge.

What kind of a down payment will I need for low mortgage rates?

Our lenders can usually offer low mortgage rates for customers even without large down payments. The traditional recommendation is to make a 20% down payment, but many lenders today commonly offer low mortgage rates with as low as 3%-5% down payments. Keep in mind, though, that the lower your down payment is, the higher your monthly payments will be and the more you will pay in interest expense over the life of the loan.

If I want low mortgage rates, should I go with a fixed-rate or ARM?

This question basically depends on when you would like your low mortgage rates-now or later. An ARM can offer lower initial interest rates and payments than can a fixed-rate mortgage. However, the fixed initial period on an ARM will eventually expire, and your payments will be at the whim of market rate fluctuations. A fixed-rate mortgage sometimes comes with higher initial payments and interest rates, but you are guaranteed these rates down the road even if interest rates rise sharply.

Is a longer-term or shorter-term mortgage better?

Legitimate arguments can be made for both short-term and long-term mortgages, depending on the goals of the homebuyer. Usually, mortgages terms less than 30 years are considered short-term and can help you build equity in your home faster and reduce the total amount of interest you will pay. Long-term mortgages are usually for 30-40 years and will help reduce your monthly payments. However, you will end up paying more interest expense over the life of the loan.

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