Finding the best mortgage rates might not be as difficult as you think. In fact, thanks to modern technology, locking in to a good mortgage rate today is easier than ever. Keep reading to find out how you can take advantage of this technology to earn the best mortgage rates today.
First of all, trust the expert opinion of those economists and market analysts that you read about in newspapers, or see on TV and on the internet. Put simply, these analysts have devoted their entire lives towards figuring out how the market works. Do you really think that you will be able to spot and predict something that they’ve missed? When you’re competing against experts with the newest, fastest technology and a number of different models, most people don’t stand a chance.
Of course, if you genuinely think you have a system that can beat the predictions of major market analysts, then take advantage of it. If it doesn’t work, then you have nobody but yourself to blame. However, keep in mind that, when you’re handling thousands of dollars of your household’s finances, it might not be the best time to take a risky gamble.
The Importance of Timing
For the rest of us, trusting the opinion of these expert analysts is one of the key things to do when looking for the best mortgage rates. This will (hopefully) allow you to time the market, which means that you can avoid paying thousands of dollars of unnecessary interest in the future.
For example, if the best mortgage rate today is 4%, then you may consider locking in at that rate for a specific term, like five years. However, if that rate drops even further down to 3% after a year, then you could end up paying far too much for your mortgage then you could have if you were on a variable plan, or if you had locked in for a shorter term.
Of course, as ideal as timing like this may be, it is very difficult to pull off properly. For that reason, many people simply turn to a variable rate mortgage as their best option. And, with an economic recovery still underway, mortgage rates are likely going to remain low for the next few years, which means that these people could be making an effective financial option.
Best Mortgage Rates: Fixed or Variable?
Like anything in the financial market, it’s tough to know what is going to change, and when it’s going to happen. There is a high level of risk involved with any transaction, particularly when you’re dealing with a large loan like a mortgage. To more effectively shield themselves from any risk, many people choose to lock in for a longer term at a fixed rate.
When choosing that option, borrowers know exactly how much they will be paying on their mortgage over the next five years of home ownership. If you’re the kind of person who would rather just know the best mortgage rate now, and not have to worry about checking the updated mortgage rate every week, then locking it in for a long period of time is undoubtedly the best option.
However, if you’re the kind of person who likes to take risks and capitalize on them, then choosing a variable rate mortgage could help you save thousands of dollars down the road. Ultimately, this decision comes down to your personal preferences, your opinion of the market, and the amount of risk you are willing to take on.