Personal Finance

5 Worst States to Get a Mortgage

House with a for sale sign out front

It's a good time to buy a home. According to the Mortgage Bankers Association, getting approved for a home loan is easier than it has been at any time in this past decade -- in fact, mortgages are almost twice as available as they were five years ago, and lenders have recently been approving 77% of loans, up from 71% in mid-2015. On top of that, interest rates are still extremely low, historically speaking.

The lower the interest rate you get for your mortgage, the less you'll pay every month. Interest rates have actually been inching up, though, and seem likely to continue doing so over the coming years. Per Mortgage News Daily, the national average rate for a 30-year loan was recently 4.19%, up from 3.62% a year earlier. Some experts are suggesting that mortgage rates could exceed 6% by 2020.

House with a for sale sign out front

Image source: Getty Images.

Make informed choices

Fortunately, right now, and probably for the next year or two, interest rates will remain on the low side, historically speaking, allowing you to buy more home than you otherwise could. Even if you're in a state with relatively high interest rates, a little shopping around can yield better deals. And even the worst rates these days are still excellent, compared to many previous years.

It's smart to figure out just how much home you can afford -- especially because your tax bill will be based on the home's value. It can be tempting to go big, but doing so can leave you with little margin of safety, in case you or a spouse loses a job or your household faces some major unexpected expenses. Also, once you decide that you're ready to make an offer as soon as you see a home you want, it's helpful to get pre-approved for a mortgage. That can make you a more competitive buyer.

So go ahead and take advantage of low interest rates for mortgages -- which currently exist in all 50 states -- but also consider other aspects of homes you consider, such as their location and their tax rates. Make some smart moves now and you may be able to spend thousands of dollars less.

The $16,122 Social Security bonus most retirees completely overlook

If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income. For example: one easy trick could pay you as much as $16,122 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Simply click here to discover how to learn more about these strategies .

The Motley Fool has a disclosure policy .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

Stocks

Latest Personal Finance Videos

    #TradeTalks: The Changing E-Commerce Landscape

    e-Commerce Consultant James Thomson joins Jill Malandrino on Nasdaq #TradeTalks to discuss the changing e-commerce landscape, what consumers should prepare for as we head into shopping season and why you shouldn’t do last minute shipping.

    4 days ago

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More