Tips on how to get Good Interest Rates on A Mortgage
13/02/2014 19:22
Before you can start shopping around for a mortgage, the first thing you need to do is check your credit scores. Be assured that all mortgagers will look into your credit score like My Local Broker - broker directory before they can think of doing business with you; hence a reason why contacting your credit company first could be a better idea. Even though your credit score may not be satisfactory, some mortgaging companies may be willing to give you a short. You however might have to look into factors that may boost your credit score to be able to grab sweeter mortgage deals.
How to get great interest rates for your mortgage
- 1. Discuss your loan options: Based on your credit score and salary income, a financial advisor should be able to advise you into establishing a baseline for your mortgage. You should also be ready to discuss your loan options with the mortgaging company to see how best you can get cheaper rates.
- Contact different mortgage companies at the same time: Although mortgage rates may fluctuate with time and from one company to another, there are companies that charge lower rates than others. The low rates in these companies are mostly determined by various programs specially offered by new companies in the market.
- Lock in period: The period of time taken until you close the mortgage deal will also determine and impact the mortgaging rate. It is therefore important to discuss with your target mortgaging company on the best time you can lock in the mortgage. Always remember that, the more lock in period you request, the higher the interest rate will be. This is because most lenders will charge a certain percentage within that given period.
- Mortgage fees: These have a great impact on the overall amount of money you pay for your home. Some companies may charge low mortgage rates as compared to others, but have higher mortgage fees. This means that although you got yourself a sweet deal with very low rates, you may end up paying more than fathomed.
- Loan structure: The mortgage loan structure may also affect rates offered by the institution. It is therefore important that you discuss with the mortgaging company on whether you have to pay for points to keep rates low for a longer time. Paying points is only reasonable if you want a long term payment period and unrealistic if you can clear the loan in a short time.
The other great way to know how much different mortgage companies are charging is by contacting them on the same day. Since rates fluctuate with time, you should be able to identify a company that charges cheaper than the others.