House Loan Rates
Buying a dream home is a desire that many of us have. Fortunately in the United States the Government and the lending institutions offer individuals many schemes to buy a home. HUD is the government organization that helps individuals in buying a home. Lending institutions support the initiative by advancing money to individuals under a term of 15 years or 30 years. The interest rates charged by the institutions is also moderate that helps us to plan whether we want to take a loan for 15 years or 30 years. The present interest rate for a 15 year loan term is 5.75% and the rate for a 30 year loan is 6.05%. If we consider the rates for a 15 year term for the last one month, three month, six month and one year it was 5.71%, 5.9%, 6.08% and 5.52%. For a 30 year loan the interest rates for similar periods were 6.01%, 6.22%, 6.43% and 5.93%. Analyzing this data we find that the interest rates have moved in a range of 0.56% for a 15 year loan term and 0.5% for a 30 year loan term. It needs to be noted that the interest difference accrued on these figures may be substantial for a loan of 15 or 30 years. Hence we should be very careful when we approach a lending institution for a loan. The Interest rates vary because of the demand and supply requirements of the economy and the rates are fixed by the Federal Reserve to offer the optimum rates to the citizens.
There are some suggestions that we should keep in mind when shopping for a mortgage. Some of these are checking the house loan rates from a large number of institutions before finalizing on one, checking our credit history before applying for a loan because an unhealthy credit history may disqualify us from getting the sanction. Other points we should keep in mind are not to spend money beyond our means on a property and planning for unexpected disasters such as fires, layoff from the job or other natural calamities.
For buying a house we must try our best to avoid interest only loans which were introduced in late 2001. Under interest only loans you pay only the interest for the first five years and things can really get expensive.
If you are planning a mortgage ensure that you get the best deal for yourself and plan the term and rates that suits your requirements. Otherwise repaying the mortgage can be a difficult task.
