As of this morning the rate for a 30-year fixed rate conventional mortgage is 3.75% (APR 3.826). A 15-year fixed rate is 3.25% (APR 3.38). This can vary with specific situations of course, but the general idea is this: money is really cheap these days. Now is a great time to get a loan and buy a house.
That said, not all mortgages are created equal. In fact, they can be very unequal, and there are scenarios you need to avoid.
On-line Lenders
I’ll not mention names here, but I think you can figure it out. The concept: go on-line and get a loan without even having to put on shoes and leave the house. Easy-peasy! Just a few clicks and you’ve got a mortgage! Well, folks, it’s never that easy. There are always issues that need to be ironed out. And when that happens, you need a bit more help than you can get from someone in a cube farm looking at your account on a screen for the very first time. You need a local expert, who knows you, knows the market, and can work creatively to get the job done. I’ve had three experiences with borrowers using on-line lenders. All three were a mess.
Big Bank Lenders
Maybe not as scary as the on-line type, maybe, but still … just don’t! In this case the problem is bureaucracy – death by committee. Too many layers, and not enough accountability vested in one person. Everything happens in slo-mo. Again, a local mortgage company (non-banking) can generally do a better, less expensive job, and can act faster than a bank in the case of a glitch.
So, what to do?
Consult with your realtor – I’d be a good choice! – and get a recommendation for one or more local lenders – someone you can walk in, sit down, and talk to – who work for a mortgage company (not a bank). Mortgage companies are set up to do nothing but make mortgage loans. They’ve got local presence, a ton of expertise, and an absence of bureaucracy. In my experience, they almost always do better – cost-wise and process-wise.