How To Get The Best Interest Rate
Getting the best interest rate is important- the lower the rate, the more money you have in your pocket. Here are a few ways to ensure that you get the best interest rate for your mortgage loan:
1. Improve your credit score
Keep credit card balances low, make payments on time, and make sure you have a variety of credit.
2. Improve your debt-to-income ratio
Trying increasing the amount you pay on your loans. When possible, always pay above the minimum payment.
3.Consider a shorter-term fixed-rate mortgage
Most borrowers consider a fixed-rate, 30-year mortgage. If you are able to handle higher monthly payments, you will be able to an even lower rate, with a 15-year fixed-rate mortgage.
4.Pay for points
Some lenders will collect money upfront in exchange for a lower interest rate during the life of the loan. These deals are called “points.” Each point is 1% of the borrowed amount, and the more you pay, the lower your interest rate