We can’t all afford homes that need little to no work done on them. That’s why mortgages exist. If you’re purchasing a first home, improving an existing home, or want to invest in a rental or vacation home, get the best mortgage possible.
The rate and terms of your loan will impact the amount of interest you pay throughout the duration of the loan. The more you lower your rate, the more you’ll save on interest.
Tips To Get a Land Reasonable Mortgage Rates
Check out this list of tips we made to help you land those low rates:
- Aim for Twenty Percent Down Payment. If you have enough cash on hand to pay a 20% down payment, you can get a lower mortgage rate than if you make a smaller down payment. Also, if you have enough cash to pay a 20 percent down payment, your monthly payments might be lower because you can get rid of mortgage insurance sooner.
- Choose to Go for the Fifteen-Year Mortgage. On a regular mortgage, you make monthly payments for thirty years. On a fifteen-year mortgage, you make payments for half that time. This is desirable if you’d like to pay off your mortgage faster. If you do, you’ll save on interest payments. Fifteen-year mortgages generally have lower interest rates than standard thirty-year mortgages, and by finishing your payment on a faster schedule, you’ll definitely end up saving more money.
- Take Time to Raise Your Credit Score. Your credit score is calculated using your credit report, which tracks your credit history. The better your credit history, the better your score. The higher your credit score, the lower your rate. One of the most significant factors that affect your score is payment history. If you’re late on payments, that negative mark stays on your credit report for seven years. While there are ways to remove this mark from your report, you should help your situation by working to consistently pay your bills on time.
- Prepare Your Employment Record. Bankers want to know that you have a stable income, and they want to know that you’ll be able to pay your mortgage. Your payment is one of the biggest factors when you’re applying for a mortgage loan. If you don’t earn enough each month, you won’t be able to afford a suitable mortgage. On the other hand, you won’t be eligible for certain mortgage programs if you have a higher monthly income. Show lenders that you’re well equipped to pay for your mortgage by giving them employment records that your income can support it.
Your Home Loan Experts at Mortgages by Misty
To get the best home mortgage rates, make sure to follow these tips. You can improve your score and make yourself a more attractive candidate for the banks by paying your bills on time, having a steady income, working to lower your debt, and applying for a loan at the right time.
Buy your dream Arizona home with the help of credible home loan experts. We’ll help you find and choose the right mortgage that will have you living comfortably. Contact us today at (480) 618-5358 to schedule your consultation!