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Don't settle for the first lender who says yes! Our advice on affordable home loans could save you real money over the life of your loan.
Did you know that a 0.10 percentage point difference in your mortgage rate could save you thousands of dollars over a 30-year home loan?
Shopping around and comparing rates is well worth your time.
Read on to find out how comparing mortgage rates could help you keep more money in your pocket.
While broad trends like the Fed funds rates, trends in the bond market, and the overall demand for housing impact mortgage rates, rates vary from one lender to another.
Traditional banks and online lenders tend to charge the most – after all, their goal is to make a profit. You’ll get more affordable home loans with credit unions, which operate on a not-for-profit model.
In fact, as of Q4 2024, the rate for a 30-year fixed-rate mortgage was lower by more than 0.10 percentage points with credit unions compared to traditional banks.
It can seem like a small difference, but 0.10 percentage points matter in the long run. If you were to spend $386,000 on a home (the average home value in Florida), this 0.10 percentage point difference would be the equivalent of saving almost $10,000 over 30 years.
Mortgage rates also differ because each lender has its own process for assessing the risk of lending you money. So, two different lenders could offer different rates to the same person buying the same home.
Besides giving you a clear idea of how much you can afford, comparing mortgage rates from multiple lenders is an important step in your journey to homeownership. Once you find a rate that works for you, you can move forward and get your pre-approval letter!
What makes a strong buyer?
Once your profile looks strong, it’s time to request quotes from multiple lenders. Try getting multiple rates within the same week for the most accurate comparison of home mortgage rates. Here’s why:
While interest rates are the biggest factor impacting the cost of homeownership, don’t overlook other costs that can vary from one lender to another. These include loan origination fees, underwriting fees, or your mortgage insurance, if applicable.
Early mortgage quotes can differ from the final rate you get. It’s important to understand what could cause your rate to change:
Thanks to our not-for-profit model, any surplus is returned to our members, including in the form of affordable home loan rates.
What does this mean for you? You can count on us to offer competitive fixed and adjustable mortgage rates, with terms that range from 10 to 30 years!
We also offer additional savings for first-time homebuyers: You could secure a mortgage with no downpayment, no PMI, and a great rate.
Don’t worry if you don’t qualify as a first-time homebuyer – we have other ways to help you save, including a 2% lender credit that should cover a good portion of your closing costs.
Why choose PFCU? As a credit union, our mission is to help our members thrive. We make homeownership accessible with affordable and flexible mortgage products – including a great program for first-time homebuyers! Plus, you can count on us to deliver an outstanding experience every step of the way.
See our mortgage rates and determine how much you could save over the years with our mortgage loan calculator.
Don't settle for the first lender who says yes! Our advice on affordable home loans could save you real money over the life of your loan.
Did you know that a 0.10 percentage point difference in your mortgage rate could save you thousands of dollars over a 30-year home loan?
Shopping around and comparing rates is well worth your time.
Read on to find out how comparing mortgage rates could help you keep more money in your pocket.
Why Shop Around for Mortgage Rates?
While broad trends like the Fed funds rates, trends in the bond market, and the overall demand for housing impact mortgage rates, rates vary from one lender to another.Traditional banks and online lenders tend to charge the most – after all, their goal is to make a profit. You’ll get more affordable home loans with credit unions, which operate on a not-for-profit model.
In fact, as of Q4 2024, the rate for a 30-year fixed-rate mortgage was lower by more than 0.10 percentage points with credit unions compared to traditional banks.
It can seem like a small difference, but 0.10 percentage points matter in the long run. If you were to spend $386,000 on a home (the average home value in Florida), this 0.10 percentage point difference would be the equivalent of saving almost $10,000 over 30 years.
Mortgage rates also differ because each lender has its own process for assessing the risk of lending you money. So, two different lenders could offer different rates to the same person buying the same home.
Besides giving you a clear idea of how much you can afford, comparing mortgage rates from multiple lenders is an important step in your journey to homeownership. Once you find a rate that works for you, you can move forward and get your pre-approval letter!
Tips for Comparing Home Mortgage Rates
Ready to shop around for affordable home loans? Before you get started, we recommend reviewing your financial profile. Building a stronger profile can delay homeownership a little, but the rewards—like securing a better interest rate—are absolutely worth it.What makes a strong buyer?
- Good to excellent credit. Lenders will also look for low utilization rates on existing credit lines and a healthy debt-to-income ratio.
- A serious commitment to homeownership: Strong buyers come prepared to make a sizable down payment.
Once your profile looks strong, it’s time to request quotes from multiple lenders. Try getting multiple rates within the same week for the most accurate comparison of home mortgage rates. Here’s why:
- By getting multiple quotes within the same mortgage credit pull window, lenders will look at these inquiries as a single one.
- Because mortgage rates can change weekly or even daily, getting all your quotes within the same timeframe limits fluctuations.
While interest rates are the biggest factor impacting the cost of homeownership, don’t overlook other costs that can vary from one lender to another. These include loan origination fees, underwriting fees, or your mortgage insurance, if applicable.
Early mortgage quotes can differ from the final rate you get. It’s important to understand what could cause your rate to change:
- Because mortgage rates change fast, your rate will likely change between the moment you request a quote and buy a home. But don’t worry! Once you’re pre-approved, you can typically request a rate lock.
- Any major changes to your financial situation before closing can impact your rate. To prevent this from happening, avoid opening new credit lines or making large purchases on credit.
- If you get pre-approved without having a specific home in mind, the home value of the property you decide on can lead to a mortgage rate adjustment based on the loan-to-value ratio.
Affordable Home Loans With PFCU
With close to 35,000 members, we’re a well-established credit union serving the South Florida community. Our strong presence in the area allows us to make a wide range of banking products available at competitive prices – including mortgages.Thanks to our not-for-profit model, any surplus is returned to our members, including in the form of affordable home loan rates.
What does this mean for you? You can count on us to offer competitive fixed and adjustable mortgage rates, with terms that range from 10 to 30 years!
We also offer additional savings for first-time homebuyers: You could secure a mortgage with no downpayment, no PMI, and a great rate.
Don’t worry if you don’t qualify as a first-time homebuyer – we have other ways to help you save, including a 2% lender credit that should cover a good portion of your closing costs.
Homeownership Is Easy With PFCU
Why choose PFCU? As a credit union, our mission is to help our members thrive. We make homeownership accessible with affordable and flexible mortgage products – including a great program for first-time homebuyers! Plus, you can count on us to deliver an outstanding experience every step of the way.See our mortgage rates and determine how much you could save over the years with our mortgage loan calculator.