If you plan on purchasing property in the near future, you’re going to be much better off financially if you could get an excellent deal on a mortgage.
The higher the interest rate on your loan, the more you’re going to end up paying over its lifetime. So it’s in your best interest to nab a phenomenal low interest mortgage sooner rather than later.
To help make that happen, we’re going to share some of our best tips to help you find the ultimate mortgage deals currently available today.
When all’s said and done, you’ll have an excellent low interest mortgage to purchase the property of your dreams.
1. Determine the Length of Your Loan
First and foremost, one way to figure out if you’ll be able to get a lower interest rate on a mortgage is to consider the length of your loan.
There are 30 year fixed rate mortgages and adjustable-rate mortgages, 15 year fixed and adjustable-rate mortgages, 5/1 hybrid mortgages, and more.
The interest rates on these loans are going to vary, and the shorter the loan, the lower the interest rate is going to be.
As an example, let’s compare a 15 year fixed rate mortgage, 20 year fixed rate mortgage versus the 30 year fixed rate mortgage. If you were to take out a 20 year fixed rate loan, your interest rate would be about 1/8 of a percent lower than the 30 year option. As far as a 15 year fixed rate loan goes, it’s actually about 3/8 of a percent lower than a 30 year mortgage.
Without actually doing the math, just know that this is going to save you a small fortune over the lifetime of your loan, even though it only seems like a tiny percentage difference.
According to Amerinote Xchange, experts providing assistance when selling your note, “This mortgage note buying process is very simple. As a future mortgage note holder, you can finance the property sale privately, without discounting the sales price (do not overprice) by creating a seller-financed mortgage note.”
2. Give Your Credit Score a Boost
If you aren’t aware already, conventional lenders will offer you a much higher interest rate if you happen to have a very low credit score.
So, if you’re really looking to get a low interest mortgage – and who isn’t – then you absolutely have to begin working toward raising your credit score.
At a minimum, a lender will require a credit score of 620 to 640 to even consider offering you a loan.
But as you can imagine, if your credit score is that low, they are going to offer you a high interest rate loan and nothing more.
If you’re trying to get the best rate possible, you need to raise your credit score to 740 or better. Because when you get your score that high, lenders will take you seriously and realise that you are a great candidate for a low interest conventional mortgage loan.
According to Dharma Merchant Services, credit card processing business to business experts, raising your credit score is the perfect way to get offered the lowest interest rates from traditional lenders.
3. Contact Multiple Financial Institutions and Compare Rate
Finally, it’s in your best interest to contact multiple lenders to compare their rates.
Some lenders are certainly going to have higher rates than others, so it’s wise to reach out to as many lenders as possible to see what they’ll offer.
If you follow these guidelines to the letter, you’ll have no problem finding the best mortgage deals currently available in the market right now.