• Kale

FIRE: Where can I find the LOWEST mortgage rate?

SEPTEMBER 2020: If you are going to buy, you should at least be sure you are getting the lowest rate.


So you need a loan.


Hopefully, you are doing so to purchase a very reasonably priced abode.


As I've written about in prior articles, purchasing a home for $140,000 or less is a great financial move and results in the equivalent of paying $1,100 for an apartment (including a 20% repair/maintenance buffer) at first. You then begin to accrue equity in the residence so it becomes an even better deal over the 15-30 year life of the loan (at which point, your payments finish - unlike rent).


For the sake of this article, I'm assuming you are following my advice and taking out a $140,000 + putting 20% down on it ($28,000).


So there are really 3 places you can go for home mortgage loans.


Banks.


Credit Unions


Online (non-bank) Lenders

So let's check out banks first.


Per bankrate.com, the lowest 30-year loan rate comes to us courtesy of Bank of America.


The rate published as of 9.10.20 is 2.750%.


This comes out to a $457/month payment.


Not bad and crazy low from a historical perspective.


On to credit unions.


Credit unions are almost always the superior option over banks as they do not pay taxes and can thus offer lower rates.


The biggest con is that you may need to meet certain criteria to join.


One of the best options is Navy Federal Credit union on a 30-year loan.


The rate published as of 9.10.2020 is 2.375%.


Ending with online (non-bank) lenders.


These are the supposed best of the bunch as they operate under a completely different business model (funded by public/institutional funds that compete with banks).


The most well-known player here is Rocket Mortgage by Quicken.


They are currently sitting at 2.99%.


There may be other marginally lower options (that are extremely hard to find) but my general advice is to use a credit union for your mortgage.


Happy saving.

Contact us

team@froogal.us

Froogal Inc. via the online web platform Froogal.us (“Froogal”) offers a software-based wealth management engine that delivers automated financial planning tools to help users achieve better outcomes.

By using this website, you understand the information being presented is provided for informational purposes only and agree to our Terms of Use and Privacy Policy. ​

Neither Froogal Inc. nor its affiliates are a bank. 

"Featured" banks and deposit rates on Froogal should not be construed as recommendations or investment advice.  Users should conduct their own research before selecting a deposit option and are wholly responsible for their bank selection. Rates displayed are updated weekly based on listing on www.depositaccounts.com. Rates displayed are subject to change at any time by the underlying banks.  If rates should change, Froogal will notify users once identified. 

IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT — To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. What this means for you: When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver’s license or other identifying documents.

Customers can only open accounts via online web portal or App.  All funds incoming transfers must be from federally regulated banks & credit unions that are subject to the same BSA/AML compliance laws.

© 2020 Froogal Inc. All rights reserved.