The lower your mortgage interest rate, the less you pay for your home over the life of your loan. Here are some tips for scoring a lower rate when you apply for a mortgage:
Protect Your Credit Score
In general, the higher your score, the lower your rate. Pay your bills on time, don’t apply for new credit cards, and don’t close any current credit accounts. Paying off a loan can actually work against you when applying for a mortgage.
Keep Your Current Job
Your employment history and income are critical parts of your home loan application. Making a job change now — even if you get a better title or more money — can delay or even derail your loan application.
Put More Down
While there are loans that require only a 3% down payment, paying more can help lower your interest rate and reduce the amount you’ll pay over the life of your loan. If you can put down 20% of the home’s purchase price, you’ll avoid the extra expense of PMI, or private mortgage insurance.
If you want more information about interest rates or any other aspect of the home loan process, it’s my responsibility to answer your questions and ensure you understand every step along the way. I look forward to answering any questions you have!
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