5 Ways You Could Get a Lower Mortgage Rate
Mortgage rates are higher than they were a year ago, making monthly payments more expensive. The good news is that mortgage rates have come down in recent weeks. Even more good news, there are things that you can do to help get a better rate.
- Make a large down payment – If possible, make a larger down payment on your home. Lenders feel “safer” with a large down payment and may be more willing to come down on the rate if you have more invested.
- Increase Credit Score and Pay Down Debt– Lenders will look at your credit score as well as the amount of debt you have. If you have a higher credit score, it typically means you have a good history of making payments in a timely manner. If you don’t have debt, it typically means that you have more money that you can use toward the payment of your loan. Take a look and see if there are any debts you can clear before applying.
- Check Around – Go to more than one lender. Check online. Look at what other companies are offering. Look at ads online and in the mail. Some companies will be more inclined to give you a better rate if they think they’re going to lose you to the competition.
- Lower Your Rate by Buying Mortgage Points – This will cost more upfront, but if you can swing it and plan to stay in your home for a long time, it can pay off. Points are usually sold in .25% increments.
- Think About New Construction – Builders are much more likely to want to cut a deal than they were a couple of years ago. Some builders are willing to buy down the mortgage rates of those shopping for new homes.
It’s also good to know how much you qualify before you start getting serious about looking for a new home. Make sure that you can get a loan that covers the cost of the homes you are looking at. Check out our listings at D4Realty.com.