Top Tips for Getting the Best Mortgage Rates
Houston Mortgage Programs
In the thrill of buying a home, it's easy not to think too hard about your mortgage rate. Aren't the rates all pretty much the same? Does a little bit of a difference after the decimal really matter?
You might be surprised.
The U.S. Census says the median price paid for a new home in April 2019 was $342,200.
Let's say you bought at that price, put 20% ($68,440) down and snagged a 30-year fixed-rate mortgage at 4.00%. A mortgage calculator will show that you'll be paying total interest of $196,750 over the life of the loan.
But if you settled instead for loan at 4.35%, you'll be looking at interest charges potentially totaling about $216,850 — $10,100 more.
Here are four tips for getting the best possible mortgage rate.
1. Look your best as a borrower
You'll score a low rate if you can convince a lender that you're a low risk.
So, check your credit score and take steps to raise it, such as paying down your debts to give yourself a lower debt-to-income ratio.
A mortgage company wants to know it will be repaid. If you can make the lender feel comfortable, you will get a sweeter deal.
2. Look your best as an earner
It's best not to apply for a mortgage until you've had the same employer for two years or more.
Know that lenders favor borrowers who are employed by businesses, versus people who are self-employed and freelancers.
If you work for yourself but your spouse works for a company, you might get a much better mortgage rate if the loan is taken out only in your spouse's name.
3. Put more money down
Sure, there are mortgages that require just a small down payment or even no down payment at all, especially when you're a first-time homebuyer.
But If you put down at least 20% of the cost of the home, you can land a lower interest rate.
Not only that, but you also can evade pesky private mortgage insurance.
4. Weigh your options
Shop, shop, shop around and compare rates. Don't just grab a loan from the very first company you talk to.
Be aware that interest rates vary across loan types. Adjustable-rate mortgages have lower rates than fixed-rate loans, and shorter-term mortgages beat 30-year loans.
In some cases, government-insured loans, such as FHA mortgages, will offer better rates than conventional loans.
Your mortgage interest rate is a choice that could be with you for years. Make a wise decision for maximum savings over that time.
Financial Capital Group, LLC is a lender that provides home and commercial finance solutions for business, professionals, individuals and families since 1999. Our love and care for others is directed as much within our walls as it is outside of them. Our desire is to work together to meet the needs of our customers.
Houston Mortgage Programs
Financial Capital Group, Houston Mortgage, Houston Mortgage Company, Houston Mortgage Options, Houston Mortgage Programs, Houston Mortgage Calculator, Houston Mortgage Application, Houston Mortgage Process, Houston Mortgage Loan Process, Houston Loan Options, Houston Loan Company, Houston Conventional Loans, Houston Loan Programs, Houston Loan Calculator