Pierce Mortgage Rates

Pierce County Mortgage Rates

When you are quoted mortgage rates, it is important to know what you are looking at. You may notice once you apply that there is a different rate on the disclosures that you are given. There are two different rates that you need to be familiar with when looking over your paperwork. There is the note rate, which is the rate that you were quoted. Your payment is based on the note rate. On your disclosures provided by your lender you will also notice an APR. The APR takes into account closing costs, points you have paid down, and other costs of the loan. The APR assumes that you make no extra payments, never sell the house, and never refinance. This situation is hardly ever reality, but nevertheless it has to be disclosed to you per government regulation. The note rate is the important rate that you should ensure is the same as the one you were quoted. The note rate will be the one that is repeated throughout the paperwork you sign at closing.

Pierce County Home Equity Loans

Before you walk into a bank to apply for a home equity loan, it is important to know just how much equity you have in your home and how much you can borrow. To determine the amount of equity you have available, take the current market value of your home (can be found on a number of real estate websites) and subtract the balance left on your mortgage. This is how much money is available to you if you borrow against the entire value of your home. Most banks charge different interest rates based on your loan-to-value (LTV) ratio. The lowest interest rates are available at 80% LTV and below. To determine if you are below this, take the market value that you found above and multiply it by .80. Now subtract what you owe on your current mortgage and that is the amount that you can borrow at 80% LTV. You can do the same with 90% as well to determine how much is available to you. It is not recommended to borrow 100% or more of the value of your house.

FHA Mortgage Loans in Pierce County

If you are a typical American with less than stellar credit and no savings to pay for a down payment, and FHA loan was made just for you. There are a number of advantages to securing a loan through the FHA but the most advantageous are the relaxed underwriting standards (lower credit scores allowed, higher debt-to-income ratio permitted) and the low down payment requirement. In addition to those very desirable features, FHA adjustable rate mortgages have the lowest lifetime cap available at 5%. The FHA also allows co-signers that are not co-owners similar to a car loan or personal loan. FHA mortgages are some of the easiest to refinance and it’s free to do so. Although FHA loans have some good features, a desirable loan candidate with excellent credit and little to no debt should pursue a traditional mortgage to take advantage of some of the better deals out there.