Best Mortgage Lender For First-Time Buyers

Are you a first-time homebuyer who is looking for the best mortgage lender with the best mortgage rate? If so, this article will highlight the two best mortgage lenders online.

Buying a property in 2021 and beyond is sound because:

  1. The stock market is too volatile
  2. Mortgage rates are at all-time lows
  3. The demand for housing is increasing due to increased affordability and low rates
  4. The government has promised to unleash trillions more in stimulus
  5. Corporate profits are surging
  6. Consumers have pent-up savings
  7. The intrinsic value of housing has gone way up since we are spending more time at home

If you are a first-time buyer, you can take advantage of lower rates.

The Best Mortgage Lender For First-Time Buyers

If you are a first-time homebuyer, consider using Credible, a convenient online lending marketplace. They have a comprehensive network of qualified lenders ready to help you get the best mortgage terms possible.

Free Quotes, No Obligation

Mortgage Interest Rate History

The great thing about Credible is that you can apply for a no obligation loan online in minutes. And within the hour, you can get actual prequalified rates from competing banks. Then you can pit your offers against each other and squeeze them even more for the best terms possible!

You, the borrower don't have to 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.

Credible Review

Credible is a great way to get multiple real mortgage refinance quotes all in one place.

Mortgage rates collapsed to ALL-TIME lows in 2020 after the Fed announced on June 20, 2019 they would be taking a very accommodative stance going forward. Uncertainty in the economy due to the coronavirus and the lockdowns have had investors fleeing to bonds. As a result, interest rates have collapsed.

As a result, not only is there an opportunity to invest in real estate in 2021 and beyond due to increased affordability, now is the time to take advantage of lower mortgage rates by refinancing.

I personally refinanced my primary residence at the end of 2020 to a 2.125% 7/1 ARM at no cost. I actually got a $500 credit to refinance! It is incredible that after a 35% appreciation in my property since I bought it in 2014, I’m now paying 30% less a month as well.

Check out Credible Mortgage Refinancing if you’re looking to lower your monthly mortgage rate. You’ll get up to six mortgage offers where you can refinance into an ARM or a 30-year fixed mortgage. You can also do cash-out refinancing if you wish. Take advantage of all-time low interest rates!

Latest mortgage rates

In fact, getting a 15-year fixed rate mortgage looks like the most attractive type of mortgage today.

Why You Should Refinance Now

Mortgage rates are close to record-lows as you see in the chart. But they could go up again due to rising inflation expectations.

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.

Interest Rates Will Continue To Stay Low

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 mortgage interest rates stay low forever. The Federal Reserve will only raise the Fed Funds rate marginally, if there is a bull market. Even so, that doesn't mean mortgage rates will go up because mortgage rates are more tied to the 10-year bond yield which has been declining due to all the risk in the markets.

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.

The Best Mortgage Lender Has The Best Rates

Take advantage of low rates. Credible is a super convenient online mortgage lender. You can get competitive, real quotes in under three minutes. Interest rates are at all-time lows. Take advantage!

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. 

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