2018 Mortgage Rates and Strategies

When buying a house and getting a mortgage loan, interest rates are one of the main aspects to consider. These rates will define the amount of money you will pay in the future, and this could be thousands of dollars more or less depending on the ones you have. That’s why today we will talk about 2018 Mortgage rates and some strategies to get the best mortgage interest rates.


What to expect for 2018 Mortgage rates

According to The Mortgage Reports, 2018 mortgage rates will go between 4% and 4.25% in the first semester of the year and between 4.2% and 4.4% in the second semester of the year.
  1. Indeed, mortgage rates of 2018 already met these predictions, as they are already in the mid-4s.
  2. Remember mortgage interest rates change daily and different factors can influence them, so check regularly to stay informed about them.

Strategies to get the best Mortgage interest rates

Although mortgage rates change constantly, there are some strategies you can apply to get the best rates when buying a house.
  • Improve your credit score-We cannot stop talking about your credit score. Having a good credit score is essential and if yours is not the best, improving it will be an excellent idea. Those with the best credit scores will get the lowest mortgage rates. People usually start getting good deals when their credit scores are around 760.
    Stop waiting and start improving it by paying down your debt, paying your bills on time and being the authorized user of someone with a good credit score.
  • Try to make a bigger down payment-Getting a loan with a down payment of less than 20% is possible, but when you do it, you usually get a higher interest rate because you are more risky to the lender than other people with bigger down payments.Sometimes you won’t get a high interest rate when paying less than 20% if you have good credit score, but if you add a bigger down payment to your list, the negotiation process could be in your favor.
  • Choose the right mortgage term-Shorter mortgage terms usually have lower mortgage rates, as well as fixed-mortgages, which will not vary. This means that if you get a 15-year fixed-rate mortgage, your rate will be lower than if you get a 30-year fixed-rate mortgage. However, think carefully before choosing because 15-year mortgages come with bigger payments and fixed-rates will stay the same not only if rates go up, but also if they go down.
  • Think about paying points-There is a way to lower you mortgage rates by paying points. This points equal one percent of the amount of your mortgage, and depending on the lender, they will reduce the rate up to 0.25%. Let’s say, for example, that you have a loan of $200,000 and you buy two points, so you pay $4,000, and each point lowers your rate by 0.25%. You paid $4,000 and your rate went down 0.5%. This will be worth it depending on how many years you will stay in your house, as you me be saving thousands of dollars in future payments or just wasting money if you are only staying a couple years there.
  • Compare mortgage lenders the dame day-Contact different lenders to compare prices and know more details about the loans they offer. You can do it in person, online or calling, but as mortgage rates fluctuate daily, try to do your comparison the same day. You could even discover promotions you didn’t know about by contacting lenders.