Looking to Buy a House in North Texas? Now’s the Time
Mortgage rates have dipped to their lowest levels in nearly two years! Now’s the time to buy a house in North Texas.
Freddie Mac Reports Dip in Interest Rates
Based on the latest data released Thursday by Freddie Mac, the 30-year fixed-rate average sank to 3.82 percent with an average 0.5 point. Points are fees paid to a lender equal to 1 percent of the loan amount and are in addition to the interest rate. It was 3.99 percent a week ago, and 4.54 percent a year ago. The 30-year fixed rate fell for the sixth week in a row and lowest it has been since September 2017.
Here’s a peek at what the numbers mean to you if you are looking to buy a house.
How We Help North Texas Home Buyers
Buying a home for the first time or heck, even the fifth time can be overwhelming. That is why we work with the best vendors in the business when it comes to financing your home. However, it doesn’t hurt to arm yourself with a little bit of knowledge before you begin your search. Here are two common types of home loans.
The fixed-rate mortgage is the most popular mortgage program in use today. Fixed-rate loans offer the borrow a fixed interest rate for the life of the loan, typically 15 to 30 years. Borrowers have peace of mind knowing that their monthly payment will not change over time. Conventional fixed-rate mortgages have underwriting requirements established by Freddie Mac and Fannie Mae and require certain down-payment and debt-to-equity ratios to qualify. Fixed-rate loans are especially attractive to buyers who plan to stay in their home for more than a few years.
ADJUSTABLE RATE LOANS
With an Adjustable Rate Mortgage (ARM), the interest rate changes periodically, and payments go up or down accordingly. Rates are tied to an index that reflects the cost of money at any given point in time. Generally, lenders charge a lower initial interest rate for the ARM than for the fixed-rate mortgage. If you are trying to maximize your purchase power today, knowing your income will rise in the future, then this loan may be right for you. Adjustable rate loans are attractive for buyers who expect to be in the home for a short period.
Give us a call today at 817-796-9172 if you are ready to find your next home or discuss how today’s low rates can work in your favor.