The state capital of New York is Albany and the city is known for its artistic atmosphere, but also as a great place for homebuyers to start looking for their next humble abode.
According to Zillow, the market temperature in Albany is currently “very hot” based on home sale-to-list price ratios, price cuts on listings and the time properties spent on the market. Home values in this upstate city have risen 1.2 percent in the last year and are expected to climb 7.8 percent by 2020.
The median home value in Albany is currently $179,200, and the average price of listed homes sold is about $180,000. With only 8.7 percent of homes having negative equity and 1.7 percent delinquent on mortgages, Albany is in good shape in terms of home market health.
There are various local and state factors that can impact current mortgage rates across the city, so it’s important for prospective buyers to be forward-thinking about the general factors to consider while buying or refinancing a home there.
Let’s take a closer look at the current mortgage and refinancing rates, the elements that can impact rates, and some of the tips for getting the most out of your lender in the greater Albany area.
Table of Contents:
Mortgage Rates In Albany, NY
Factors That Impact Mortgage Rates in Albany
https://ift.tt/2O59sRU are various determinants that can impact mortgage and refinancing rates and make the difference in saving versus spending thousands of dollars on a home purchase. Therefore, it’s critical to compare offers and loans and to consider how potential factors could affect rates.
Let’s take a closer look at some of the key elements that may impact current rates for mortgages and refinancing in Albany, New York:
Credit Score
homebuyers should go into their mortgage search understanding that their current credit score has a major effect on their ability to secure a mortgage. Mortgage and refinancing companies use the credit score as a gauge of trust and reliability.
Those getting ready to start looking for a home should first assess their current credit score and review all credit reports for errors to dispute any underlying problems in advance.
According to The Lenders Network, the average credit score needed to get a home loan in 2019 depends on mortgage type:
- Federal Housing Administration (FHA) loan: 580+ credit score (500-579 score is possible but unlikely)
- Veterans Affairs (VA) loan: 620+ credit score (some lenders require 580)
- United States Department of Agriculture (USDA) loan: 640+ credit score
- FHA 203K loan: 620+ credit score
- Conventional loan: 620+ credit score
Some lenders will provide a bit of wiggle room, but it’s wise to consider the previous numbers as the baseline credit scores for getting a home loan.
Interest Rate Type
loans can come with various types of rates, but the two most common are fixed and adjustable-rate mortgages. Essentially, a fixed-rate loan locks you in at the same rate throughout the life of the loan. Adjustable rates are more flexible, as they can go up and down based on the market.
The main factor homebuyers need to consider when choosing between these loan options is the long-term payout. While the initial rate of an adjustable loan will likely be lower than that of a fixed loan, the rate can increase substantially over time.
Location
loans vary based on the state in which potential borrowers plan on making a purchase or refinancing a home. According to Trulia, the following average mortgage rates are based on someone with a 760 credit score putting down 20 percent on a $200,000 house in Albany:
- 30-Year fixed: 4.42 percent
- 20-Year fixed: 4.45 percent
- 15-Year fixed: 3.902 percent
- 10-Year fixed: 4.375 percent
- 7/1 Adjustable Rate Mortgage (ARM): 4.5 percent
- 5/1 ARM: 4.152 percent
- 3/1 ARM: 0 percent
Loan Amount
there can be more risk for lenders based on the size of the loan. The larger the loan, the greater the potential loss if the homebuyer doesn’t make timely payments. This can have a major impact on mortgage and refinancing rates, as lenders will likely lend at higher rates to reduce the risk.
Down Payment
interest rates for home and refinancing loans can vary depending on how much the borrower is willing to put down as well. Putting down a larger down payment will generally lead to a lower rate.
How to Get the Best Mortgage Rates in Albany, NY
Getting the best mortgage and refinancing rates in Albany is all about exploring the options and comparing what lenders in the area can offer.
According to the Consumer Financial Protection Bureau (CFPB), nearly half of borrowers (47 percent) don’t shop around and compare lenders while searching for a home.
To avoid spending more than necessary, prospective homebuyers should keep the following tips in mind to find the best mortgage and refinancing rates in Albany:
Shop Around
the CFPB has reported that visiting just three different lenders can potentially save the average homebuyer thousands. Homeowners should look into different companies and compare the quote details to better understand which option works best for their specific goals.
Some of the details to pay attention to during the comparison include the loan amount, the interest rate, monthly principal, mortgage insurance, total monthly costs, and lender credits.
Get Pre-approved
mortgage pre-approval can save homebuyers peace of mind at the beginning of their home search process. Bankrate recommended going through with pre-approval because it gives those ready to start looking for a house an idea of where they stand in terms of a budget.
Also, many listing real estate agents tend to turn clients away from potential buyers who make an offer before getting pre-approved due to the lack of pre-approval verification.
Consider Different Rate Options
there’s a reason various rate options exist for homebuyers; exploring all options can save money depending on one’s preferences.
For example, choosing a mortgage with a 4 percent interest rate instead of a 4.5 percent interest rate means paying an additional $1,400 in principal over the first five years of the loan with even the smallest percentage difference having a potential impact on financing in the future.
Don’t be afraid to negotiate
rates may be flexible throughout the whole process until the final signing. Always ask questions about fees and rates, but remember that lenders and sellers have the right to refuse any of the requested changes. Although, it doesn’t hurt to ask.
Recommended Companies in Albany, NY
There are several mortgage and refinancing options to consider in upstate NY. Here’s a look at six lenders that stand out in the Albany, NY market:
- Syracuse Securities Inc.: Known as the mortgage professionals, this full-service mortgage lender provides access to a full range of FHA, VA, USDA, and conventional mortgage products.
- Homestead Funding Corp.: This multi-state licensed mortgage broker has branches throughout the eastern U.S., helping first-time buyers purchase a home or current homeowners refinance or renovate an existing space or property.
- Bank of America Mortgage: This nationwide lender can provide 30-year fixed rates as low as 4.25 percent, and 15-year fixed rates at 3.5 percent. Homebuyers have various mortgage options to choose from, and current homeowners can refinance with this lender.
- NBT Bank of Albany and Capital Region Financial Center: This bank offers home financing through a residential mortgage or a home equity line of credit. The mortgage options are offered at competitive interest rates, making it easier to compare and choose one based on personal preferences.
- Hudson River Community Credit Union: backed by the Federal Deposit Insurance Corporation as an Equal Housing Lender, homebuyers can obtain a mortgage with this credit union, getting an annual percentage rate as low as 4.25 percent.
- Quicken Loans: The nation’s largest FHA lender, Quicken Loans provides a 1 percent down payment program to all qualified homebuyers.
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