America’s housing market has reached an odd place. On the one hand, there aren’t a lot of houses available right now, making the market a seller’s market. On the other hand, mortgage rates have reached a low point. With the market being in such a weird spot, finding the right mortgage can get complicated, especially for first-time homeowners. The one thing that hasn’t changed? Homeowners still want the best mortgage interest rates possible. Here’s what you need to do to achieve that goal.

Decide Between a Fixed Rate and an Adjustable Rate 

When it comes to getting the best mortgage rates, understanding is key. The more you know about your options, the more informed your decisions will become. Your research can help you secure the low rates you deserve. Most importantly, you should understand the difference between a fixed-rate mortgage and an adjustable-rate mortgage.

With a fixed-rate mortgage, the homeowner pays the same interest rate across the entire loan period, which can last for up to 30 years. Most homeowners choose this option when buying a home. It helps them avoid surprises, since it requires the same payment each month. Because fixed-rate mortgages remain steady, they often let homeowners spend less money on their mortgages overall.

However, in a few cases, the adjustable-rate mortgage has lower overall costs. Adjustable-rate mortgages change over time. They remain the same for the first few years, but from there, the interest rates can change drastically. More often than not, those interest rates go up instead of down. However, if you can afford to pay off your house in a short amount of time, an adjustable-rate may provide the best mortgage interest rates for you.

Neither option is right or wrong for everybody, but keep in mind that adjustable-rate mortgages are riskier and more complex than the fixed-rate option.

Plan and Save 

By planning and saving for your new home up front, you may get some of the best mortgage interest rates in the long run. For instance, if you’re not in a hurry to buy your new house, then you can take your time, stay up to date on the market trends, and wait until the market works in your favor before you buy a new house.

You can also take time to improve your credit score before you apply for a loan. Financial institutions usually provide the best mortgage interest rates to people with great credit scores. The more you improve your score, the less interest you can expect to pay.

Plus, you might take some time to save for a large down payment. House payments are a lot like car payments; The higher your down payment, the lower your interest rates on the loan. When homeowners can pay a large percentage upfront, they present less of a risk to mortgage providers. As a result, mortgage providers offer better rates for these clients.

Work With a Mortgage Broker 

On the other hand, what if you don’t have much time to plan for your new home? You may need a loan fast, but you’ll still want to make informed decisions. In that case, a mortgage broker can help you find the best mortgage interest rates.

Mortgage brokers offer a lot of benefits for new homeowners. For one thing, they bring a lot of expertise to the table. They understand loans, mortgages, and the housing market in general. That’s why they help homeowners close on their mortgages quickly. Mortgage brokers can also match homeowners to the best loans for their situations. They can find the best rates, so their clients can save money.

Contact an Expert

If you’re looking for the right mortgage broker, let an expert help. They make it as simple as possible to find a mortgage, and can help you find the best mortgage interest rates for your situation. We’re also one of the fastest loan closers on the market, closing within 30 days.

A new home is one of the most important investments you’ll ever make. You deserve to make the most of that investment. Contact experts like those at First Fidelis now to make sure you have the right team on your side.