Congratulations! You have just taken a step into a new world with the decision to purchase a home. Before you can get a mortgage, you must be able to qualify for one. Lenders take into consideration many different factors when evaluating applicants like you. Up Next: What Kind Of Mortgage Is Right For You? To […]
Understanding Kansas City Mortgage Rates
Kansas City mortgage rates are often confusing to new homebuyers and existing homeowners. When a lender offers you a rate, the figure is largely determined by:
Luckily, Kansas City mortgage rates have continued to remain relatively low over the last few years. This is good news for any buyer still seeking a home loan or any homeowners who have yet to refinance. If you fit either of these categories, you will have two types of Kansas City mortgage rates to choose from: fixed rates and adjustable rates.
These rates are fixed throughout the entire life of your loan, so you are guaranteed a flat monthly payment with no surprises. A borrower will know exactly what their payment will be every month. However, fixed Kansas City mortgage rates typically come with 15 or 30 year loan terms and you will pay more interest overall than you would on a shorter-term loan.
Adjustable or variable rate mortgages begin with a fixed rate for a set time, most commonly 5 or 7 years. After the fixed period is over, an adjustable rate fluctuates with the housing market. This type of loan generally permits borrowers to lower their initial payments if they are willing to assume the risk of their interest rate rising.
Mortgage Rates Effect On Monthly Mortgage Payments
No matter what type of Kansas City mortgage rate you choose, make sure to do your homework throughout the home buying process. Remember a 1% difference in your interest rate can mean a 10% difference in your monthly mortgage payment. Review your HUD-1 settlement statement prior to closing your new home. The figures listed should match those provided on your good faith estimate. If the figures have increased or you see new charges, contact your lender immediately and ask them to rectify or explain the mistakes. Being informed can save you thousands of dollars in the long run.