5 Best Mortgage Rates

Mortgage is one of the most important financial decisions in life. You should take a decision of buying or selling your home only after making sure that you are getting a good deal. There are many factors that will affect your mortgage rates, but here are 5 best mortgage rates that you can opt for.

1. Fixed rate mortgage

This is the best option if you want to buy a house. If you are planning to buy a house then this is the best option because this type of mortgage will give you a fixed interest rate for the entire loan period.

2. Variable rate mortgage

Variable rate mortgages are not as common as fixed rate mortgages, but they are available in some parts of the world. If you are going to sell your house or if you are planning to rent it out then variable rate mortgages are the best option. You should know that this type of mortgage will be effective only if you are planning to sell your house within a short time. If you are planning to rent your house out for more than a year then you should avoid this type of mortgage.

3. Adjustable rate mortgage

This is the second-best option if you are going to buy a house. It will give you an interest rate that can change from time to time. You should know that this type of mortgage is not recommended if you are planning to buy a house for long term. This type of mortgage will give you a high interest rate at the initial stage of your loan period and then it will reduce gradually.

4. Conforming loans

If you are planning to buy a home with a loan amount less than $417,000 then you can apply for a conforming loan. This is the best option if you are planning to buy a house in a small town. If you are planning to buy a house in a city or a large town then this is not the best option.

5. Government loan

This is the last but not the least option. This is the best option if you are planning to buy a house in a rural area. If you are planning to buy a house in a small town then this is the best option.

Conclusion:

So, these are 5 best mortgage rates that you can opt for. If you want to buy a house then you should opt for a fixed rate mortgage, but if you are planning to rent it out or sell it then you should opt for variable rate mortgage. If you are planning to buy a house in a small town or in a rural area then you should opt for conforming loan. If you are planning to buy a house in a large town then you should opt for government loan.