TexasFHA.org Reports On Fluctuating Interest Rates And Their Effect on FHA Loans
Many factors are considered during the loan application process that affect the interest rate paid and borrowers need to understand these factors, announces AMCAP Mortgage-North Houston
Spring, Texas – February 8, 2017 /MarketersMedia/ —
Mortgage rates continue to fluctuate, leaving borrowers wondering if now is the time to buy or if they should hold off. Investors continue to react to financial news releases and those looking to borrow are finding their closing costs will be affected by these fluctuations. FHA loans in Texas seem to be fairly stable, with the interest rate running approximately, 3.75 percent, but borrowers need to shop around to ensure they get the best deal, as rates do vary greatly by lender. Furthermore, FHA loan requirements need to be carefully examined, as only those who meet specific criteria qualify for this rate.
“FHA loans are designed to help individuals purchase a home, yet lenders must protect themselves when offering funding to consumers. For this reason, a borrower’s credit history, FICO score and more play a role in the interest rate they will be charged, and borrowers should take steps to ensure they qualify for the best rate possible, while keeping in mind interest rates could go up. We work with clients to determine whether now is the time to buy or if they should hold off a little while longer and work to get a better rate,” Gerry Nicodemus, spokesperson for AMCAP Mortgage-North Houston, explains.
Individuals need to ensure they understand the requirements of a loan of this type. This includes the allowable debt to income ratio, acceptable credit scores, closing costs they will be expected to pay and more. Furthermore, a potential borrower should see if they pre-qualify for a loan of this type, as this helps them to determine which lending option best meets their needs.
“Texas FHA loans offer attractive interest rates, low down payments and flexible qualifications, allowing more borrowers to qualify for the home of their dreams. One major benefit of choosing this option is the monthly payment is always predictable, thanks to the fixed rate of these loans. In addition, lenders are more willing to work with FHA loan borrowers, as the mortgage is guaranteed by the government. This means they take on less risk,” Nicodemus states.
One thing borrowers need to consider is whether they should lock in a mortgage rate. As the rates are fluctuating so rapidly, some experts recommend locking in a rate. Others, however, suggest holding off and seeing if rates drop even more. This is a decision each borrower will need to make, and a lender can be of help in determining which option is best for the borrower’s unique situation.
“Contact us today to learn more about FHA loans. We handle this type of loan regularly and will ensure you understand every step of the process. Our goal is to ensure you are satisfied with your home and your mortgage, and we’ll do everything we can to make this happen,” Nicodemus declares.
About AMCAP Mortgage – North Houston:
A registered mortgage banking entity with the Texas Department of Savings and Mortgage Lending, AMCAP Mortgage-North Houston also holds licenses to conduct business in 22 states. They maintain offices in a number of these states and employ the most experienced personnel to ensure an outstanding customer experience.
Contact Info:
Name: Gerry Nicodemus
Organization: AMCAP Mortgage – North Houston
Phone: (281) 860-2533
For more information, please visit http://texasfha.org
Source: MarketersMedia
Release ID: 168068
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