2015 was a year known for consistency when it comes to mortgage rates.  On average home loan rates stayed around four percent throughout the year.  The same is not to be expected for mortgage rates in 2016. The National Association of Realtors says it expects to see rates upwards of four point five percent by the end of 2016.  The rise in interest rates will have an effect on the housing market.  It is important to note that even with the increase expected to be seen during the year that the rates being seen are still at an all time low.  It isn’t necessary to panic but instead to be cautious when seeking to buy a new home or refinance and existing loan.

To ensure you qualify for the lowest mortgage rate and best possible home loan follow the advice below.

  • Enhance Your Credit Summary: A lender first looks at a buyer’s credit profile on a whole when determining if they are a financial risk that they are willing to take on. When you are looking to buy a home or refinance an existing loan it is important to manage your current debit.  Be sure to pay your bills on time and pay more than the minimum on all outstanding credit card balances.
  • Start Hording Funds For A Down Payment: When a buyer puts less than twenty percent down on their new home they are often forced to pay what is known as PMI, primary mortgage insurance. This can raise the monthly payment of your loan upwards of fifty dollars each month.  These funds go towards an insurance that is paid on your behalf to the mortgage lender to insure the mortgage.  It is better to have fifty extra dollars each month going on the principle mortgage payment over insurance.  A home can be purchase with less than twenty percent down however buyers should be conscience of the extra monthly expense.
  • Work With A Mortgage Broker: So much more goes into obtaining a mortgage than just finding a low interest rate. There are many programs available to home buyers as well as an abundance of financing options. A mortgage broker can help find a loan that caters to your specific financial situation.  They will seek out a variety of options from a variety of lenders and present you with the best scenarios from each to assure you are getting the best deal for your all around situation.
  • Learn About Loan Types: As mentioned above there are several types of mortgages available.  Just because a friend has a fixed rate, thirty year mortgage does not mean that is the best option for you.  The same is true for an adjustable rate home loan.  Different situations call for different mortgages.  Learn about each option and ask about how each will affect your mortgage.

Buying a home is a complex process.  Working with professionals within the industry will help smooth the transition into home ownership.  It is advantageous for buyers to seek assistance from real estate professionals, mortgage experts, home inspectors and real estate lawyers when purchasing a home.  This will help to ensure a positive transaction and beginning in your new home.

Cross Country Mortgage in Brighton, Michigan provide mortgage services for clients including new home loans, refinancing, reversed mortgages, new purchase home mortgages and home equity loans to the entire Livingston County area including Brighton, Howell and Livingston County. Cross Country Mortgage Brighton, MI at http://brightoncrosscountry.com/.