Zillow recently gave Utah’s housing market a 10 out of 10. According to their research, Utah’s median home value is $320,900. Home values in this state have increased 13 percent over the last year, and Zillow projects a rise of 7.8 percent next year. In addition, the median listing price in Utah is currently $354,900.
If you are considering purchasing a home in Utah, you might be thinking about how certain factors regarding your financial circumstances will contribute to your mortgage rates. It’s important to note that throughout the U.S., mortgage and refinancing rates are influenced by interest rates on a national scale as well as the local economy.
Utah’s state laws, foreclosure rates, lender competition, and home values primarily contribute to home mortgage and refinancing rates in the state.
A variety of factors contribute to the mortgage and refinancing rates on a more personal level, however. Lenders may look at the risk you pose to them as a borrower when deciding whether or not to work with you. Read the following information if you’d like to learn more about the mortgage and refinance rates in Florida.
Current Mortgage & Refinancing Rates in Utah
Mortgage Rate Factors in Utah
Several factors can affect mortgage and refinance rates in Florida. To get the best interest rates, learn about how different factors can save or cost you money.
Credit Score
Most lenders prioritize this information when deciding if you should refinance a loan. If you qualify, this number usually indicates the rates you might anticipate. Credit scores are important to lenders because they determine your risk level as a borrower.
Those with high credit scores are typically low-risk consumers, able to pay their debts on time. For that reason, low-risk customers can expect to see lower mortgage rates. You can still get a mortgage or refinance your home with bad credit, but you may get higher rates than average.
Loan Term
The length of your mortgage has an impact on the rates you can expect to receive. The shorter your mortgage term, the lower your interest rates, and overall costs should be.
However, shorter mortgage terms typically have higher monthly payments, so these should be reserved for homebuyers who feel comfortable paying higher costs over a short period. Buyers with less cash reserves may opt to pay lower monthly rates over a longer period of time, yet that will entail paying more over the life of the loan.
Type of Refinance
There are plenty of refinancing options you might consider. When deciding what type of loan product you would like to invest in, consider the features of each one in relation to their associated costs. For example, Zillow considers a rate-and-term refinance to be the most popular refinancing option.
When deciding if you should purchase this type of refinance rather than a cash-out or cash-in option, you’ll want to compare rates and see which one makes the most sense for your situation.
Down Payment
The amount of money you put down on your home affects your rates. Larger down payments typically result in lower interest rates. The standard down payment lenders expect their buyers to put down is 20 percent, but plenty of mortgage companies offer jumbo loans and other home loans that cover buyers who cannot put 20 percent down.
Interest Rate Type
You might consider either a fixed- or adjustable-rate mortgage when shopping around for loans. Fixed interest rates do not change during the life of the loan, while adjustable rates can fluctuate with the market following an initial fixed-rate period.
Your interest rate might be initially lower with an adjustable-rate mortgage, but these rates can change based on market fluctuations. Deciding your risk tolerance from the start can help you get a better idea of the kind of interest rate you should pursue.
Get the Best Mortgage & Refinancing Rates in Utah
When you are looking for the best mortgage rates and refinancing options in Utah, you should always shop around to make sure you are getting the best possible deal. By not looking at different rates from multiple mortgage lenders, you risk overpaying for your mortgage or refinance.
Consulting several lenders can help you find the best rates, which can save you tens of thousands of dollars over the mortgage term. If you want to shop around for the best rates, follow these steps:
Contact Multiple Lenders
You might need to get on the phone with multiple loan officers when comparing mortgage rates. If some lenders’ rates are comparable, you might want to inquire about any benefits they offer customers to close the deal. Maybe they will consider paying the closing costs and underwriting fees if you are able to close the deal soon.
In addition, some lenders allow customers to get personalized quotes online by completing a simple application, so you don’t need to spend the whole day on the phone.
Consider Different Mortgage and Refinance Types
In addition to looking into several lenders, you may also consider different mortgage and refinance options. Certain types of loans can save you money in the long term or offer benefits that make them worth paying a little extra.
Do your research to see the pros and cons of different mortgage and refinance options so you can determine which is better suited to your needs.
Keep Any Additional Costs in Mind
When you’ve found a mortgage or refinancing rate that you feel positive about, ask the lender about any additional expenses like prepayment penalties, broker fees, and closing costs. That way you won’t surprised if the rate increases suddenly.
The lender should send you a loan estimate form, which should include the estimated total cost of your mortgage or refinance loan.
Recommended Companies in Utah
If you are looking for a home mortgage or refinance in Utah, you have plenty of options to choose from. Before you commit to a lender, shop around to make sure you are getting the lowest possible rate. Some of the most popular lenders serving consumers in Utah include:
- Quicken Loans: This lender’s 90-Day Rateshield
perk is one of the reasons borrowers want to take out mortgages from Quicken Loans. When consumers use this feature, they protect themselves from mortgage rate increases over the course of 90 days. - Lending Tree: Lending Tree offers immediate online quotes from multiple lenders, which saves borrowers the legwork of calling loan officers to obtain this information.
- J.G. Wentworth: This lender has an A+ Better Business Bureau rating, making it one of the most highly-approved companies in the market. Before applying, understand that this lender typically only offers mortgages to buyers with credit scores above 620.
- NBKC Bank: This large bank services all 50 states and offers a variety of loan products, including conforming and non-conforming mortgages, VA and FHA loans, and flexible refinance choices.
- New American Funding: New American Funding closes purchase loans in only 14 business days. They exclusively offer mortgages to individuals with a minimum credit score of 580.
- AmeriValue: This flexible lender helps borrowers with all types of credit scores get home loans.
- NASB: NASB provides an online financial resource center, which offers borrowers advice on personal financing and educates them on the latest market trends.
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