You’ve looked at all your options for loan programs and have decided that an FHA mortgage is right for you. FHA loans have relaxed qualification requirements, lower closing costs, and allow for a down payment as low as 3.5%. But before you hit the “submit” button on your application, it’s important to shop around and compare FHA mortgage rates. Here’s why.
Shopping Around Can Save You Money!
Buying a house is an expensive ordeal when you consider all of the costs involved. Not only are you responsible for future mortgage payments, but you also have to spend money on a downpayment. So, if you’re like most borrowers, you’re probably interested in saving money any way you can. But are you making all the right moves?
A recent survey conducted by Lending Tree found that more than half (about 54%) of today’s borrowers don’t shop around for the best mortgage rate. They accept the first offer they receive and fail to contact any other lender, missing out on potentially thousands of dollars. Meanwhile, the approximate 45% who do shop around state that the best offer they received didn’t come from the first lender they contacted.
So even if you’ve already received an offer from another lender, it’s best to keep looking. In fact, we would be more than happy to help you explore your options and see if you can qualify for a better FHA mortgage rate.
Impact of a Lower FHA Mortgage Rate
A lower mortgage rate can significantly impact the overall cost of a mortgage loan and your monthly payments. Here are some key reasons why a lower FHA mortgage rate matters:
- Lower monthly payments: With a lower interest rate, your required monthly mortgage payment will be lower for the same loan amount. This frees up more of your monthly budget for other expenses.
- Pay less interest over the loan’s lifetime: Mortgage loans stretch over decades, so even a small difference in the interest rate translates into thousands of dollars in interest paid over the full term of the loan. A lower rate means paying substantially less in total interest.
- Increased affordability: A lower rate increases your purchasing power. Expensive homes become more affordable because the monthly payment amount is lower with a reduced rate.
That being said, it’s important to consider mortgage rates along with other critical factors like your down payment, credit score, loan fees, and long-term homeownership plans. But in general, a lower interest rate provides substantial savings over the multi-decade life of a mortgage.
Get Prequalified Today
Shopping around for FHA mortgage rates? Let us show you what we have to offer! Call now to get in touch with a mortgage expert and begin the application process!
