Compare The Best Mortgage Rates in Lakeside, MI

Compare Lakeside, MI Mortgage Rates

Whether someone intends to buy a new home or refinance the mortgage on their current home for a better deal, it's crucial that they get the best possible mortgage rates. That's where MyRatePlan can make a world of difference in pulling up the best mortgage rates in Lakeside, MI. We have all the info and tools a home buyer needs to research and compare mortgage rates, which will help them get the lowest interest rate and avoid paying any more than necessary for a home.

Different Mortgage Types Available in Lakeside, MI

For home loans, there are many products available to appeal to a variety of buyer types. The two most common types of mortgages on the market are fixed-rate mortgages and variable mortgages, which work very differently and suit different types of borrowers.

A fixed-rate mortgage in Lakeside, MI will be fixed at one interest rate during the entire term of the loan, hence the name. The borrower will be making a monthly payment for the same amount every month, whether they have a 10-year mortgage or a 30-year mortgage. This keeps things consistent and gives the borrower some peace of mind, because they don't need to worry about any terms on their home loan suddenly changing.

True to their names, adjustable-rate mortgage loans (ARMS) in Lakeside, MI have changing interest rates that can increase or decrease depending on the market. The most common type of ARM is known as a hybrid ARM, and the reason is that it actually combines features from fixed-rate mortgages and ARMs. It starts like a fixed-rate mortgage with a set interest rate for a certain number of years, and then it switches over to an ARM. An example would be a 7/1 ARM. The seven indicates the number of years that the mortgage has a fixed rate, and the one indicates how often, in years, the interest rate adjusts after that. Therefore, a 7/1 ARM means a home loan with a fixed interest rate for the first seven years and an interest rate that adjusts every one year from that point forward.

Lakeside, MI FHA Mortgage Loans

Every borrower will need to decide whether to get a fixed-rate mortgage, an ARM or a hybrid ARM. They also need to figure out if they want to stick to a traditional type of home loan, which is only backed by the mortgage lender, or apply for a government-insured home loan, such as an FHA loan, a VA loan or a USDA loan. With these loans, the federal government is providing insurance or a guarantee on the loan to help the lender avoid heavy losses in the event of a borrower defaulting.

FHA loans in Lakeside, MI are offered by the Federal Housing Administration, a branch of the Department of Housing and Urban Development, or HUD for short. The FHA has a mortgage insurance program to cover lenders, and its FHA loans are an option for any type of borrower, meaning it's not only first-time borrowers who can get an FHA loan. That mortgage insurance covers any losses the mortgage lender would have if the borrower defaulted. One significant advantage with an FHA loan for the borrower is that they can get one with a much lower down payment, even as low as 3.5 percent of the home's total cost. The drawback with FHA loans is that the borrower must cover the cost of mortgage insurance, which adds to their monthly loan payment. They wouldn't need to pay as much if they put down a larger down payment and got another type of loan.

Refinancing Home Loans In Lakeside, MI

When you choose to refinance your mortgage in Lakeside, MI, it is imperative that you fully comprehend that you are actually applying for a whole new mortgage. This could mean that you might have to pay closing costs and various other fees once your application gets approved. If you are trying to refinance in order to get a lower interest rate on your mortgage, you should take into consideration if the extra fees and the closing costs are going to offset any savings you might see from refinancing to a lower interest rate. The only exception to this rule is if you're trying to refinance from an adjustable-rate loan to a fixed-rate loan.

With adjustable-rate loans, it is very likely that at some point in the near future your rates will go up instead of down. When you're trying to look for a new rate on your next home loan, you want potential lenders to view you as low risk. You can do this by maintaining your credit score above 700 and keeping the ratio of your debt-to-income as low as possible. Doing this will ensure that you can get the best rate possible when applying for a fixed-rate loan. Keep in mind that even if you don't have the best credit, you may still be able to get approved for a home loan in the Lakeside, MI area for a low interest rate by using MyRatePlan.