- Buying a house in the US is possible and you can confirm it by reviewing the interest rates as of August 5
- They report that the rates for fixed loans to 15 and 30 years have decreased
- However, rates for adjustable rate loans have risen
If your dream is to buy a house in the United States, check the interest rates as of August 5, because this could be the time to do it, according to information published on the Business Insider economic portal.
Home ownership has risen faster among Hispanics than among whites and African Americans in the United States between 2014 and 2020, according to a report by real estate firm Redfin, according to the EFE news agency.
Mortgage interest rates today Thursday, August 5
Experts report that mortgage rates could continue to trend down for at least a few more months, so you don’t need to mobilize to take advantage of today’s low rates if you’re not ready for it.
What’s more, what they recommend is asking credit experts for a loan estimate. Basically it is waiting for the right moment. The 15-year average fixed rate remained at 2.31% and the 30-year average fixed rate remained at 3.21%.
Refinance rates today Thursday, August 5
In addition, Businesss Insider experts indicate that you can get a better rate with a government funded mortgage through the FHA or VA, this depends on the time in the term that you decide. Government mortgages are good options if you are eligible.
They further say that adjustable refinance rates are considerably higher than fixed or government funded refinance rates. They assure that the mortgage rates are low, it would be a good day to fix a rate, especially if you want to buy fast. The 15-year average fixed rate remained at 2.44% and the 30-year average fixed rate remained at 3.37%.
The research found that Latinos are more likely than participants in other groups to have received direct help from their relatives and other family members to pay their rent, the initial deposit on the purchase, or the mortgage.
“That ability to count on family is one of several reasons why the Hispanic homeownership rate continues to rise steadily,” according to Sandoval. Filed Under: Buy Home Rates
Redfin noted in his report that Hispanics who buy a home are also more likely than people in other segments of the population to make financial efforts to purchase a home. 44% of Hispanic buyers have worked longer hours, 39% have a second job, and 38% continue to drive an old car.
“For many Hispanics, making social or personal sacrifices is a necessity if they want to buy a home,” said Sandoval. “This is especially true this year when Hispanics have been exposed more than other groups to job loss due to the pandemic.” Filed Under: Buy a Home
Buying a Home: Adjustable Rate Mortgages
Now your second option will be to get a rate mortgage, an ARM or an adjustable rate mortgage. What is the difference with the fixed ones? That with an ARM the rate will be fixed only for a predetermined period and then it will vary. For example, 7/1 ARM mortgages lock your interest rate for seven years, then the rate will change annually.
If you are considering an ARM, it is important that you consult with your bank or who will grant you the credit about the interest rates or if you can opt for a fixed rate option, which today is an excellent option since they are low in the market real estate. Filed Under: Buying Home Interest Rates
How to get mortgages with low interest rates?
A low mortgage rate is what everyone dreams of. Well, since they are at historical lows, it is possible to get it. Although you do not have to run right away, because experts assure that the rates to buy or refinance your home will remain low for a longer time due to the effects of the coronavirus on the economy.
On the other hand, if you feel prepared or want to prepare to buy a house in the short term, we share four easy steps with which you can start to organize to get the right mortgage that will take you to the home of your dreams. Filed Under: Buy a Home
Buy a house: First: Create a good ‘reputation’
To create a ‘good reputation’ you will only need to pay debts and make the payments that correspond to you on time, which will allow you to increase your credit score in view of any bank.
Good credit history will help you when applying for a loan from an external source, as they will verify the possibility of default, which would decrease your chances of getting it since it represents a greater risk for lenders. Filed Under: Buying Home Interest Rates
Buy a house: Second: Save
The money saved will be good for the down payment on the house. By offering a higher down payment on your home, you are more likely to get a better mortgage rate.
Also keep in mind that if you don’t have money saved for a down payment, but you have solid credit and a stable income, a government-backed loan may be your best option. Remember that if you choose a conventional or government-backed loan and pay less than 20 percent of the down payment, you will also have to pay for mortgage insurance. Filed Under: Buying Home Interest Rates
Third: Check your DTI index
Before buying a house in the United States, check your DTI index. What is this? It is the amount you pay for your debts each month, divided by your gross monthly income, so it is important that you are aware of what you want to do.
Basically, it is important that you lower your debt-to-income ratio, so you can do two things: evaluate options to increase your income and review the best way to pay off all your debts. Filed Under: Buy a Home
Fourth: Consider a government loan
Quarter. Undoubtedly, even if the interest rates in the market are low, through a mortgage backed by the government you can get an even lower interest rate.
Among them, check if you are eligible for a USDA loan (focused on low-moderate income people who shop in rural areas), a VA loan (for military and veterans) or an FHA loan, which were established to achieve that the mortgages are more reasonable, especially for first-time home buyers. If you can apply, you will not only find lower rates, they allow down payments as low as 3.5% of the sale price and for USDA or VA loans no down payments are required. Filed Under: Buy a Home