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In terms of area, Alaska is the largest state in the country. The state is situated in the far north eastern portion of the United States. Alaska was the 49th state to be admitted to the union, only ahead of Hawaii. The capital is Juneau, and the largest city is Anchorage. The state is home to Mt. McKinley, the tallest mountain on the continent. The biggest adjustment for residents of the state is that from November to January, it is mostly dark. For people in Alaska looking for a home, you will have a variety of homes to purchase. You can choose a rustic cabin, or you can choose a nice home in the city. Whatever type of house you want, Alaska will deliver. If you are buying a new home, you will probably need a mortgage loan. These loans can be complex and scary, so it is important to be familiar with how mortgage loans in Alaska work.

Mortgage Loan Laws in Alaska

Alaska has laws in which mortgage lenders must follow. These laws are to protect you as a consumer so you are not taken advantage of by a dishonest lender. Laws are in place to make sure you are informed about your loan. Lenders are required to send billing statements that include the amount due, payments received since the last statement, the breakdown of where your money is being applied, and any fees that are being added. If you are having trouble making your monthly payments, lenders are required to contact you to discuss the situation. Lenders are required to give you a Truth in Lending statement that discloses the exact cost of the loan. In addition, lenders must give you a Good Faith Estimate. This document will state the exact interest rate of your loan, monthly payment amount, and loan term. It will tell you exactly where your payments are going.

Alaska Mortgage Rates states that the rate for a 30-year fixed loan in Alaska is 4.15%. For a 15-year fixed loan, the interest rate is 3.34%. If you decide on a 20-year loan, the rate is 3.73%. For an adjustable rate mortgages, the rate for a 7/1 ARM stands at 3.44%, and a 5/1 ARM will be 3.31%. If you wish to have a 3/1 ARM, the rate is 3.48%. In order to get the best rates, you need to have a good credit score. If your credit score is lower, your rate will be higher.

Types of Mortgage Loans in Alaska

Before you apply for a loan in Alaska, make sure you know what is available to you. Some of the choices include:

  • Fixed rate mortgages: With this type of loan, you will lock in your rate, and it will stay the same throughout the loan.
  • Adjustable rate mortgages: With an adjustable rate, you will start out with an initial period. After that time, your rate could increase or decrease depending on the current market.
  • VA mortgage: If you are in the military or you are retired military, you are eligible for a VA loan. The Veteran’s Administration will provide 100% of the funding, so you are not required to have a down-payment.
  • FHA loan: This loan is insured by the Federal Government. It is an option available to all homebuyers. You can obtain a FHA loan with as little as 3.5% down payment.
  • Conventional mortgage: This loan is not backed by the Federal Government. You can obtain a loan by only making a 3% down-payment.
  • USDA mortgage: If you have a lower income, this is the right loan for your needs.

Alaska Mortgage Loan Outlook

Last year, the mortgage rates increased. Some of this increase can be attributed to the Presidential election and other things that were occurring. predicts that mortgage rates could drop slightly within the next year. However, rates will remain steady, and nothing dramatic will occur.

If you need a mortgage loan in Alaska, search for the best lender available. Make sure you understand the rate that you are offered, and make sure you carefully read all of the terms and conditions of the loan. You can then enjoy your Alaska dream home.