Credible is the best mortgage company to lower your interest rate today. Credible has longevity, a healthy balance sheet, and a proven track record.
In the past, you'd have to apply for a mortgage one-by-one. It was cumbersome, slow, and very tiring. Now, you can apply for a refinance, a new mortgage, or a HELOC through Credible and get multiple lenders to aggressively compete for your business. So much more efficient!
When banks compete, you win. Click here to see what type of mortgage you can get for free.
Free Quotes, No Obligation
The great thing about Credible is that you can apply for a no obligation loan online in minutes, and within the hour, you'll get competing banks e-mailing and calling you about their best rates. Then you can pit each one against each other to give you the best deal possible!
You, the borrower doesn't pay Credible a penny. It's the banks who pay Credible to compete for your business. As a result, lenders are motivated to try and get you the best loan possible to win your business.
Be forewarned the celerity of the lenders can be quite surprising to those who are not used to such quick service. Their e-mails and phone calls will die down after several days once they realize you have gone with another lender, or are not interested in their offers.
I like to use Credible to get quotes in writing and then bring these quotes to my main bank to get them to match or beat the Credible rate. Using this strategy, I was able to get my bank to refinance my jumbo loan to a 2.375% interest rate from their initial 2.5% offer.
Why You Should Refinance Now
It behooves you to at least check what the latest rates are if you have not refinanced in the past six months. If you are a new homebuyer or want to refinance, it's important to get as many bids as possible to get the best mortgage rate and terms as possible.
A big part about growing your net worth is doing everything possible to minimize expenses. I believe everybody should at least own their primary residence to get neutral the ever rising property market. Once you own, it's all about lowering your property taxes and getting the best mortgage rate possible.
The economy is recovery post pandemic. Therefore, there is inflationary pressure and pent-up demand. In this scenario, rates generally go up to stem demand. The best mortgage company is always looking out for a borrower's best interests.
My Take On Interest Rates
Mortgage rates have been going down for over 40+ years as you can tell by the chart. There is obviously a risk that interest rates will rise at some point in the future, but I'm in the camp that interest rates will stay low for years to come.
Just look at Japan after their real estate bubble burst in the late 1980s. Their interest rates have hovered close to zero for 30 years. Sweden, Australia, and 20+ other countries have zero or negative real interest rates at the moment as well.
I see a scenario where interest rates only inch up by about 2% maximum over the next 20 years because there's still a lot of slack in the economy. The best mortgage company will help you get the best rate.
ARMs Are Best
In a continued low interest rate environment, I prefer taking out a 5/1 ARM amortizing over 30 years. Why pay a higher rate when the average length of homeownership is 7 years and interest rates are in a structural decline? You can certainly go for a 30-year fixed loan if you want absolute peace of mind and believe interest rates will be aggressively higher in the future. But if the 5/1 ARM mortgage rate is at least 1% cheaper, then I would strongly consider an ARM.
Take the monthly interest savings and save or invest it. There's a interest rate hike cap that's fixed for one year after the fixed adjustment of an ARM is done. There's also a lifetime interest rate cap that's usually no more than 4% – 5% higher than the initial rate. You can always refinance your ARM before the fixed period is over like I've done many times before.
Also check out a 15-year mortgage rate. Post pandemic, the average 15-year mortgage rate is below the average 5/1 ARM rate! This is very unusual and won't last. The best mortgage company will help guide you to the best product.
If You Currently Have An ARM
If you have less than two years remaining on your adjustable rate mortgage before it becomes variable, I highly recommend you refinance today or before the fixed rate ends because ARMs are tied to LIBOR rates once they are variable, and LIBOR rates have surged higher.
The great thing when you refinance an ARM is that banks based the initial 3, 5, 7, or 10 year fixed rate based on the 10-year bond yield, which has remained relatively stable. The banks are essentially SUBSIDIZING you with a lower rate in the beginning to get your business.
Related: Best Place To Refinance Your Mortgage
Best Mortgage Company = Best Rates
The goal is to save money by locking in a new low rate now before they rebound higher. I've refinanced three different properties over the past 13 years multiple times, and my combined interest savings a month is roughly $4,000.
That adds up to well over $1,000,000 in interest savings over the life of the loans! If you can find a home that's a good deal, you can afford the payments, and plan to stay there for 10+ years, then I would take advantage of record low interest rates and buy property.
Check out Credible, the best mortgage company where qualified lenders compete for your business. You can get competitive, real quotes in under three minutes for free. Interest are at all-time lows. Take advantage!
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About the Author: Sam began investing his own money ever since he opened an online brokerage account in 1995. Sam loved investing so much that he decided to make a career out of investing by spending the next 13 years after college working at two of the leading financial service firms in the world. During this time, Sam received his MBA from UC Berkeley with a focus on finance and real estate.
About Financial Samurai: FinancialSamurai.com was started in 2009 and is one of the most trusted personal finance sites today with over 1 million organic pageviews a month. Financial Samurai has been featured in top publications such as the LA Times, The Chicago Tribune, Bloomberg and The Wall Street Journal.