Summary
Are you dreaming of raising a family, hosting gatherings, or building generational homeownership? Join us as we outline strategic steps needed to secure the best deal on your dream home.
Understanding how your mortgage rate could affect the overall cost of your home is a critical step before planning to save for homeownership. Strategic savings towards your down payment complement a competitive mortgage rate to give you a winning approach.
Our current interest rates for home loans in 2024 provide you insight into financing options available through OneUnited Bank. Get the best from the start!
A Mortgage Rate is the interest rate charged for a home loan. It’s paid monthly, along with your principal payment, until your loan is paid off. The higher your mortgage rate, the more you pay in total interest on top of your principal.
While the interest rate is the cost of borrowing the principal from the lender, your Principal Payment is the original amount of money borrowed.
Locking down the best rate helps you secure a more affordable monthly mortgage payment and potentially save thousands of dollars over the life of your loan!
There are several key steps in securing your first home with the most favorable rate.
Step 1 – Financial Assessment: You want to take stalk of your financial situation so you know that you can afford the monthly payments and other homeownership costs. Figuring out your debt-to-income ratio can help you here.
Take your monthly debt payments and divide them by your gross monthly income, meaning the total of all the money you make before taxes and other deductions are taken out. Lenders use this ratio to assess your ability to manage additional debt, such as a mortgage.
Step 2 – Assess Your Credit Score: Lenders look at your credit score to determine the risk of a borrower. To score a better mortgage term, raise your credit score by paying down balances, paying bills on time, and avoiding opening several lines of credit simultaneously.
💡 Use our Check Rates calculator to find the best combination of mortgage rates and fees. Free quote – try it out!
Step 3 – Plug in The Numbers: You can estimate your monthly payments by punching your numbers in our calculator. Check out a complete and accurate fee quote for all the loan types that you may be eligible for.
Step 4 – Save, Save, Save: The more you have saved to put down on your home, the less you need to borrow from a lender. That means lower monthly payments and money saved throughout the loan. Saving makes a lot of money sense!
For instance, a 20% down payment of $60,000 on a $300,000 home could save tens of thousands in interest over 30 years compared to a 10% down payment.
The best way to save is to automate and separate! In your OneUnited Bank account, explore more on our AutoSave feature that automatically rounds up your change and deposits it into your savings. Saving in a dedicated account allows you to allocate funds for specific financial goals, with home down payment getting its own dedicated focus.
🏠 With the OneUnited Bank Breeze through 2024 promotion, there will be no charge to you for an appraisal or credit report. These fees are on us!*
These steps can help you secure your dream home. Assess your finances, improve your credit score, and utilize tools like our Check Rates calculator to find the best mortgage options.
Remember, saving is key – automate and separate your savings, focusing on your home down payment goal. Your dream home awaits!
More questions on home loans? Contact one of our consultants today to reach your goals! #BankWhereYouWantToBe
