Due to the mortgage crisis caused by too many arms and interest only loans being doled out to borrowers who didn't fully understand their specific situations and what payment amounts they could handle, interest rates are low. President Obama has passed legislation that makes it easier for many homeowners who are underwater or upside down, to refinance their current loans at lower rates and better overall terms.
Whether you are in this situation, looking to purchase a new home, or trying to refinance your existing home loan, no doubt you want to find the lowest fixed rate mortgage rates available. There are two basic things to know.
1) You will find the lowest mortgage interest rates online. When you are researching rates online, you are able to compare rates, fees, and closing costs being offered by dozens of lenders with one application. Websites like Lending Tree provide borrowers an opportunity to let lenders fight for their business, by offering their best fixed rate loan terms.
2) The shorter the term, the lower the interest rate. Many people choose to secure a 10 year fixed loan to pay the least amount of interest. Of course, even though the interest rate is lower, the monthly payment will be much higher because you are paying off the principle in a short amount of time. Some people go with as long as a forty year fixed mortgage to get the smallest monthly payment possible. The interest rate will be higher.
The lowest fixed rate mortgage interest rates going now will be around 4%, if you have stellar credit, good debt to income ratio, and other factors.
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