North Carolina Mortgage Rates

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What You Need to Know About Mortgage Rates

Everyone wants to have his / her own home. When you are just renting an apartment, you pay for the monthly rental fee, but you can never have full ownership in the long run. But when you avail a mortgage loan, you can definitely have an affordable payment scheme where you can loan the property in such a way that you will not have pay in full cash.

Right now, there are several credit and lending firms offering different mortgage loans and packages depending on your budget and other needs. But before finally deciding to get a mortgage loan, what are the things that you have to take into consideration.

Know More About the Mortgage Market

Just like in any other type of investment, you have to study the mortgage market. You need to know the current mortgage rates in order to assess whether this is the perfect time for you to get a mortgage and finally purchase your own home.

As the housing market starts to recover, you get to enjoy lower borrowing costs. Based on recent figures released by Freddie Mac, the average 30 year fixed mortgage rate is at 3.54%. For those who intend to loan their property, this is a good option. When you get a 30 year fixed mortgage rate, you can be assured that all through the duration of your loan, your mortgage rate will remain steady. Since you have longer terms (30 years), you can also expect for lower amortization.

On the other hand, the average rate for a 15 year fixed mortgage is at 2.74%. This is type of loan is recommended for buyers who do not want to incur high interest costs. Availing a mortgage loan with longer terms enable you to have low amortization but if you are going to calculate and sum up the total costs, you'll see that the property gets more expensive because of the yearly interest costs that you have to pay.

What Affects Your Mortgage Payment

Once you finally apply for a mortgage loan, this is now part of your financial obligation to make sure that you pay on time. It is essential that you know how much you are actually paying and the components that comprise your amortization.

Basically, you have to pay for the principal amount as well as the interest rates. But apart from these components, you also have to shoulder real estate taxes and insurance.

Which Type of Mortgage Loan to Get
North Carolina Mortgage

Consult your mortgage provider so that you can have different options. Not everyone can apply for a mortgage loan since many firms would require a down payment. If you cannot raise the 20% down payment of the property's total price, you can still have other options in order to avail a mortgage. It is possible for you to get an FHA loan where there is no need to pay for the 20% down payment. You can just access the official website to know the complete guidelines and requirements for the FHA loan application.

Mortgage Tips for Full Doc Mortgages

Here are a few things that all borrowers should include in their home loan list.
1. Make sure to have last 2yrs tax returns available. This can be a pain to find, and it is 'normally' submitted to most underwriters.If you are self-employed, they will require ALL schedules with the 2yr tax returns, and might require 1yr of business tax returns.

2. Keep last paystubs that show at least 30day earnings. If you are paid bi-weekly or bi-monthly, 2 paystubs will suffice. If you are paid weekly, you would need to have the last 4paystubs

3. Mortgage lenders require last 2month bank statements or asset statements. If the pages are listed 1to8, they will require all 8 pages.

4. Last 2yrs of w-2's are commonly asked for

5. If you report overtime, commissions, or bonuses, make sure to calculate for 2yrs divide by 1. If you only received for 1yr, then you can't count it towards your income.

6. Offer letters for new jobs are needed if you plan to change jobs. Salary, Start date, and immediate supervisor are some of the information required on these letters

Mortgage North Carolina