Buying a house means an investment of a lifetime. So, one should take time in getting the proper mortgage quotes. In Manhattan, a buyer can compare the mortgage rates offered by different lenders and choose the best suitable one. According to a recent report by Jonathan J. Miller, president of the appraisal firm Miller Samuel, Manhattan residential real estate market has stabilized. Mortgage rates are now at record lows and the prices are still much below peak levels.
Only opting for the lowest mortgage rate will not be a good idea. A buyer also needs to see the other terms and conditions stated in the mortgage before finalizing the deal. A person can also get online mortgage quote. He needs to fill out a form that asks for some basic information like-
* Credit report: A person having an excellent credit report is likely to get lower interest rate on the home loan.
* Type of mortgage: Whether the person wants to take a fixed rate, adjustable-rate, hybrid, or a balloon loan. If a borrower wants to refinance his existing loan, the terms and conditions will be slightly different.
* Loan term: If a person opts for a longer loan term, the interest rate will be more.
* Type of home: The interest rate will also depend on the type of the real estate property. The property can be an apartment, a single family unit, a duplex or a condominium.
* Percentage of down payment: A person needs to pay 20% of the total loan amount toward down payment. However, if one is unable to do so, he needs to buy PMI (Private Mortgage Insurance). This insurance ensures repayment of the mortgage amount to the lender, in case the buyer fails to make payments.
* Loan amount: The mortgage rate also depends on the amount of loan taken by the homebuyer.
In Manhattan, mortgage rates for both commercial and residential properties in case of adjustable type are set to recast.
By John Hester