Choosing a Home Mortgage

Choosing a home mortgage is probably the biggest financial decision most people make in their lifetime. When choosing a mortgage loan it is important to learn about the different mortgage types available so you are equipped to make the right choice.

Making the wrong choice can cost you tens of thousands of dollars more in mortgage interest payments or the possibility of losing your home as a lot of home buyers found out recently during the boom years.

There are several mortgage loans available these days, some are very risky when used improperly. Some home mortgages are just darn right risky and should never have been offered for home purchases or for mortgage refinancing.

Loan Type

Purchase Refinance with Cash out Refinance

State

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District Of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming

FICO Score

Superior (780-850) Exceptional (760-779) Excellent (740-759) Very Good (720-739) Good (700-719) Above Average (680-699) Average (660-679) Fair (640-659) Need Improvement (620-639) Poor (350-620)

Loan Amount

$

Points

Up to 0 points Up to 0.5 points Up to 1 points Up to 1.5 points Up to 2 points Up to 2.5 points Up to 3 points

LTV

%

Loan Term

 15-Year Fixed  20-Year Fixed  30-Year Fixed  5-Year ARM  7-Year ARM  10-Year ARM

Show Advertiser Disclosure

The lenders whose rates and other terms appear on this chart are ICB's advertising partners. They provide their rate information to our data partner RateUpdate.com. Unless adjusted by the consumer, advertisers are sorted by APR from lowest to highest. For any advertising partners that do not provide their rate they are listed in advertisement display units at the bottom of the chart. Advertising partners may not pay to improve the frequency priority or prominence of their display. The interest rates, annual percentage rates and other terms advertised here are estimates provided by those advertising partners based on the information you entered above and do not bind. Any lender Monthly payment amounts stated do not include amounts for taxes and insurance premiums. The actual payment obligation will be greater if taxes and insurance are included. Although our data partner RateUpdate.com collects the information from the financial institutions themselves, the accuracy of the data cannot be guaranteed. Rates may change without notice and can change intraday. Some of the information contained in the rate tables including but not limited to special marketing notes is provided directly by the lenders. Please verify the rates and offers before applying for a loan with the financial institution themselves. No rate is binding until locked by a lender.

Lender

APR / Rate

Fees / Points

Payment

NMLS #1835285

4.846%

15-Year Fixed

4.625%

$5,912

Includes 0.978 points for $3,912

Lender Fees: $2,000

$3,086 /mo

Next >

NMLS #1513908

5.201%

15-Year Fixed

4.990%

$5,822

Includes 0.879 points for $3,516

Lender Fees: $2,306

$3,162 /mo

Next >

NMLS #1689962

License: 02053435

5.391%

15-Year Fixed

5.250%

$3,708

Includes 0.927 points for $3,708

Lender Fees: $0

$3,216 /mo

Next >

NMLS #2578474

5.393%

15-Year Fixed

5.250%

$3,750

Includes 0.675 points for $2,700

Lender Fees: $1,050

$3,216 /mo

Next >

NMLS #401822

5.409%

15-Year Fixed

5.125%

$7,500

Includes 0.875 points for $3,500

Lender Fees: $4,000

$3,190 /mo

Next >

NMLS #2326098

License: 60DBO-181478

5.436%

15-Year Fixed

5.250%

$5,077

Includes 0.781 points for $3,124

Lender Fees: $1,953

$3,216 /mo

Next >

NMLS #2006915

License: 60DBO-149268

5.457%

15-Year Fixed

5.250%

$5,445

Includes 0.875 points for $3,500

Lender Fees: $1,945

$3,216 /mo

Next >

NMLS #1025894

5.632%

15-Year Fixed

5.490%

$3,712

Includes 0.753 points for $3,012

Lender Fees: $700

$3,267 /mo

Next >

NMLS #1835285

5.864%

30-Year Fixed

5.750%

$5,000

Includes 0.750 points for $3,000

Lender Fees: $2,000

$2,335 /mo

Next >

NMLS #1835285

6.007%

5-Year ARM

5.875%

$5,696

Includes 0.924 points for $3,696

Lender Fees: $2,000

$2,367 /mo

Next >

NMLS #1513908

6.105%

30-Year Fixed

5.990%

$5,186

Includes 0.720 points for $2,880

Lender Fees: $2,306

$2,396 /mo

Next >

6.201%

30-Year Fixed

6.125%

$3,228

Includes 0.625 points for $2,500

Lender Fees: $728

$2,431 /mo

Next >

NMLS #2578474

6.236%

30-Year Fixed

6.125%

$4,750

Includes 0.925 points for $3,700

Lender Fees: $1,050

$2,431 /mo

Next >

NMLS #2326098

License: 60DBO-181478

6.249%

30-Year Fixed

6.125%

$5,469

Includes 0.879 points for $3,516

Lender Fees: $1,953

$2,431 /mo

Next >

NMLS #401822

6.265%

30-Year Fixed

6.125%

$5,995

Includes 1.000 points for $4,000

Lender Fees: $1,995

$2,431 /mo

Next >

NMLS #1689962

License: 02053435

6.319%

30-Year Fixed

6.250%

$2,908

Includes 0.727 points for $2,908

Lender Fees: $0

$2,463 /mo

Next >

NMLS #2006915

License: 60DBO-149268

6.355%

30-Year Fixed

6.250%

$4,445

Includes 0.625 points for $2,500

Lender Fees: $1,945

$2,463 /mo

Next >

NMLS #3030

6.368%

15-Year Fixed

6.250%

$3,000

Includes 0.750 points for $3,000

Lender Fees: $0

$3,430 /mo

Next >

NMLS #1025894

6.461%

30-Year Fixed

6.375%

$3,608

Includes 0.727 points for $2,908

Lender Fees: $700

$2,496 /mo

Next >

NMLS #2326098

License: 60DBO-181478

6.881%

5-Year ARM

6.750%

$5,581

Includes 0.907 points for $3,628

Lender Fees: $1,953

$2,595 /mo

Next >

NMLS #3030

6.973%

30-Year Fixed

6.875%

$4,000

Includes 1.000 points for $4,000

Lender Fees: $0

$2,628 /mo

Next >

Rate data provided by RateUpdate.com. Displayed by ICB, a division of Mortgage Research Center, NMLS #1907, Equal Housing Opportunity. Payments do not include taxes and insurance premiums. Actual payments will be greater with taxes and insurance included. Rate and product details.

Most people will need to finance a home purchase with a bank or mortgage company. There are several ways to go about finding home mortgage loans. One can go to a mortgage company or mortgage broker, shop for mortgage rates at banks or even comparison shop for mortgage types and rates online. We offer a mortgage search engine that allows you to search for mortgage rates in your zip code.

Search Here for Mortgage Rates

When you start your search for mortgages be sure to figure out how much you can afford to pay each month. Another factor to consider when buying a home is the down payment. In the boom years anyone could get a loan with a small or no down payment. Those days are over, most banks will require you to have a minimum of a 20 percent down payment, though some banks and mortgage companies require less.

When refinancing a mortgage the loan-to-value ratio cannot exceed 80 percent, meaning your existing mortgage cannot exceed 80 percent of the value to the home. Example: If you home is worth $500,000 the existing mortgage loan cannot exceed $400,000.

With today's mortgage rates so low lots of folks tried to refinance a mortgage but couldn't since the value of their home dropped and the loan to value exceeded 80 percent. The government has recently offered a program for home owners who exceed the loan-to-value ratio but your mortgage must be held by one of the government sponsored entities like Freddie Mac to qualify for refinancing.

Choosing a home mortgage loan can be a complicated task. A good option is to become knowledgeable with the different types of mortgages available. Now is a good time to purchase a home refinancing a mortgage because current mortgage rates are at historic lows.

The most common mortgage product is a 30-year mortgage. There are conforming 30 year fixed rate mortgages and jumbo fixed rate mortgages. Jumbo mortgage rates are higher because banks are unable to sell those loans to Freddie Mac and Fannie Mae due to the mortgage loan limits that prevent them from purchasing loans over a certain dollar amount. The mortgage amount is set by the county you live in. You can search for conforming loan limits by county here. Conforming loan limits.

15-year mortgages are another common mortgage product. Your monthly payments will be highest than a 30-year mortgage because you are paying off the mortgage loan in 15 years. The interest rate savings over the life of the loan can be substantial. 40-year mortgages are also available but we don't recommend this mortgage product because the interest you will pay over the life of the loan is ridiculous.

Adjustable rate mortgages allow one to enjoy lower mortgage rates during an initial period of the mortgage loan. Then the interest rate resets annually after the initial period has ended. There are different fixed rates available, including one year adjustable rate mortgages, 5 year adjustable rate mortgages known as 5/1 ARMs, 7 year adjustable rate mortgages, known as 7/1 ARMs and 10 year adjustable rate mortgages, known as 10/a ARMs.

Interest only mortgages allow you to only pay interest charges on the loan, you don't make principal payments at all. Initially the monthly mortgage payments are lower since you're not paying down the principal balance. There is a set period of time you only pay interest, after that period your payments include principal payments so your monthly mortgage payment increases.

Now that you have some information on the different type of mortgages available you can start searching for the best mortgage rates available right here by using our free mortgage search engine. You can search for mortgage providers, mortgage types and mortgage rates in your zip code right here.

Mortgage Search Engine