Posts Tagged ‘15 year fixed mortgage rates’

15 Year Fixed Mortgage Rates

Tuesday, February 1st, 2011

How to Find a Great Fixed Mortgage Deal

In the current economic climate, fixed mortgage deals are highly preferred by prospective home buyers in the US. These deals allow buyers to lock in their interest rates at the prevailing low levels. Even if the rates do rise in the future, the buyer still has to pay the same 30 or 15 year fixed mortgage rates that are fixed currently. The cost savings that this affords make fixed rate mortgages a good option for those who would like to keep costs within a well planned budget.

There are many mortgage lenders in the market and finding a fixed rate mortgage that suits all your needs perfectly and gives you the best rate in the market can be a challenging task. Here are some ideas you can use to make sure your you get the best deal on a fixed mortgage.

Keep Your LTV Low

The loan-to-value ratio plays a very important part in determining the overall cost of your fixed mortgage loan. The LTV makes a comparison between the total value of the house you want to buy and the total loan that you want to apply for. For example, you want to buy a house that has a price tag of £100,000 and you can pay cash deposit of £10,000. Your mortgage loan should cover the rest of the price, that is, 90% of the home’s total value.

Typically, lenders offer the best 30 year or 15 year fixed mortgage rates when you have a higher stake in the property in the form of a larger cash deposit. This reduces your LTV and consequently the total amount you need to take as payday loans online. Keeping your LTV below 75% gets you the best rates in the market.

Select Your Mortgage Term with Care

In selecting the mortgage term you are most comfortable with, there are many different aspects to consider. The longer your mortgage term, the greater the period over which you are burdened with debt. On the other hand, a loan that is spread over a longer term entails lower monthly installments. This means that your recurring financial outgo is significantly reduced, allowing you to manage the payment easily, albeit for a longer duration.