When shopping for a mortgage, the first thing everyone wants is a low mortgage rate. While it’s easy to get tempted by low rates, it’s still very important to do your research and make sure you won’t end up regretting your choice down the road. While there are many reputable companies that will secure you a low mortgage rate, there are also those who may prey on inexperienced home buyers. Here are some things to look out for when you spot a low mortgage rate:
Some lenders may advertise a very low mortgage rate to catch your eye. But once you read the fine print, you may find that that rate is subject to change. Unless you are getting a fixed rate mortgage, you are essentially at the mercy of the banks. Many lenders offer a one or two year discount, but after those first couple years you may find yourself with substantially higher rates. Make sure you know exactly what kind of mortgage you’re getting before you sign anything. Speaking to a mortgage professional can help you see through marketing tactics like this!
- Fixed or Variable
As we’ve said above, mortgage rates may be subject to change. While some homeowners prefer a variable rate mortgage due to their flexibility, and the potential for saving should rates fall, the inexperienced homeowner may feel more confident applying for a fixed rate mortgage. With a fixed rate mortgage your interest rate will stay stable throughout your term, which will save you from any surprises.
However, if you are willing to risk a little on a variable rate mortgage, or wish for more flexibility in your mortgage, then it would be best to seek the advice of a mortgage professional, especially if you are an inexperienced home buyer.
- Unsuitable Investments
Low mortgage rates may push potential homeowners into investments that are unsuitable or overly risky that they wouldn’t otherwise have considered. Buying a property is a huge purchase. It is often the biggest purchase people will ever make! Before getting tempted by low mortgage rates, it’s important to weigh every side of the purchase and seek professional guidance to make sure the purchase is right for you.
It’s important to know that yes, you can find a low mortgage rate. But, in order to do so, you must work with reliable professionals and steer clear of advertising tactics that may lead you into making a financial mistake. If you are looking for low mortgage rates from a reliable source, don’t hesitate to contact one of our professionals today!