Today's Rates In New York
September 22 2021
September 22 2021
September 22 2021
New York Home Loans
New York real estate and home values are on the higher value scale. If you're buying or refinancing a home in NY, you'll want to secure the best NY mortgage rates and lenders in order to save as much money as possible. 2021 will be an interesting year in the housing industry.
Check and compare today's NY mortgage rates from home loan lenders. They show the average current mortgage rates NY borrowers are paying. However, not all borrowers pay the same rate.
- The mortgage rate you secure depends on the type of lender you use, your FICO credit score, down payment (or home equity if refinancing), the type of loan and a number of other factors.
Find out what mortgage rate lenders will offer you specifically, for the loan you are seeking. The way to do that is to seek personalized rate quotes from mortgage lenders licensed to make home loans in New York.
Contact a lender, provide them with some basic information about you and the loan you are seeking, and they will tell you what mortgage rate they're willing to offer. Do that with 3-5 lenders and you'll likely find the best NY mortgage rate available to you.
- Make sure you receive a complete loan estimate (LE) from each lender to compare rates and closing costs.
Ask to get prequalified for the mortgage you are interested in which will let you know if a lender is willing to give you a loan and at what rate. A more advanced step when you decide on a lender is getting preapproved, which is where a lender gives you a letter you can show to home sellers as proof of your ability to get a mortgage.
FAQ: If refinancing, a preapproval is smart also since this can be done relatively quickly and possibly save weeks of wasted time if you do not qualify.
Searching for the best NY mortgage rates
When comparing mortgage rates, don't automatically assume the lowest mortgage rates that you see are the best NY mortgage rates. Some lenders will offer a low rate that comes with excess closing costs fees that make it appear to be a good deal. Be particularly careful if a lender offers you a rate that includes discount points. Discount points are a way of buying a lower mortgage rate and can save you money if used carefully. But they're part of the total cost of the loan that you need to be aware of.
- Consider how long you will stay in the home before “buying down the rate” with discount points. The recovery period for the upfront investment can be as long as 5 years.
Rather than simply looking for the lowest mortgage rate in NY, a better strategy is to look at the APR, or annual percentage rate. The APR reflects the total cost of the loan, the mortgage rate and all closing costs fees, in terms of an annual interest rate. For fixed-rate mortgages in particular, it's a more accurate reflection of the cost of the loan than looking at the interest rate alone.
- Read below for a quick rundown of the main types of home loans New York borrowers will likely encounter and what to expect from them in terms of mortgage rates.
FAQ: Beware of lender quotes that are designed to appear lower than most. Rate quotes are only as good as what can be secured and locked in. Rates can change daily.
Also called conforming loans, these mortgages are offered through most lenders and backed by either Fannie Mae or Freddie Mac, two government-supported enterprises (GSE’s) that provide a type of insurance that allows lenders to offer more favorable terms to borrowers. The most common type of home mortgage in the United States, these will likely offer borrowers with good credit the lowest mortgage rates in NY, particularly if they can make a large down payment or have substantial home equity when refinancing.
- GSEsprimarily act as financial intermediaries to assist lenders and borrowers in housing and agriculture. Fannie Mae and Freddie Mac, the two most prominent GSEs, purchase mortgages and package them into mortgage-backed securities (MBS), which carry the financial backing of Fannie Mae or Freddie Mac.
FAQ: Conforming conventional loans usually offer lower mortgage rates than say Jumbo loans. In 2021, the one-unit conforming loan limit has been increased to $548,250.
FHA loans are backed by the Federal Housing Administration. A popular option for first-time homebuyers, these typically offer the best mortgage rates for borrowers with less-than-perfect credit or who cannot afford a large down payment. Borrowers can make a down payment as small as 3.5 percent without having to pay a higher mortgage rate.
- FHA loan limits can vary from county to county, so check with a lender or online depending on the home the county is in.
FAQ: Don’t think that FHA mortgages are just for 1st time homeowners of homebuyers. They serve many purposes for many type borrowers. FHA has no guideline on how many homes a person has owned.
For veterans and active duty members of the military in good standing, VA Mortgages offer some of the best mortgage rates in NY or anywhere else, and generally do not require a down payment.
- The VA streamline refinance program is among the easiest to obtain.
FAQ: Consider a lender who specializes in VA home loans. These type loans require a good understanding and these lenders will be better suited to help guide you through the process.
Not as popular in recent years, adjustable-rate mortgages are a type of loan where the mortgage rate varies over time to reflect market conditions, rather than being a fixed rate for the entire life of the loan. This means ARMs can offer a lower rate than a comparable fixed-rate loan, at least initially, though the rate can go up or down after that. Most ARMs offer a fixed rate for the first 1, 3, 5, 7 or 10 years of the loan before the rate resets, which makes them a good option for borrowers who don't expect to stay in the home long-term.
- These programs are especially attractive when fixed rates rise.
FAQ: Make sure you have a good understanding of the “margin” and “index” being tied to any ARM program you are considering.
Home Equity loans and HELOCs
These loans allow you to borrow money using part of the equity in your home as collateral. Because they are secured by home equity, they offer lower rates than you can get on unsecured loans like credit cards or personal loans. They come in two types, a standard home equity loan where you borrow a lump sum of money and repay it, and a home equity line of credit (HELOC) that allows you to draw against a line of credit backed by your home equity for 5-10 years before you have to begin repaying it.
- You can use the form at the top right of this page to request rate quotes for all these loan types to find the best home equity and HELOC rates in NY.
FAQ: Weigh the options between refinancing or doing a Home Equity or HELOC loan. Which is most cost effective for your particular situation?