Let’s face it, anyone who has a mortgage is interested in low mortgage rates. But, due to a variety of reasons, not everyone can get the lowest mortgage rate they want.
The reasons that can affect your mortgage rate can be related to the economic times when the mortgage is written or it can be related to specific factors that are related to your own personal credit rating.
Often, a bank or mortgage company will advertise their best rates to bring in the customers. However, the criteria for qualifying for these rates is very difficult.
Let’s look at the top 4 things you can do to secure the lowest rates.
1) You must have good credit. If your credit is bad, it is highly unlikely that you will get the lowest rates possible. It is important that you do not have any bills in collection and that you have not made any late payments recently either.
2) Obtain many different quotes from different banks or mortgage brokers. What you can do is take the best quote to the other banks and see if they will give you a better rate.
3) Another way to get low mortgage rates is to secure a shorter term loan. Banks prefer shorter terms because they will view you as a better investment.
4) If you have some assets then that can work in your favor as well. Having some money in the bank, especially if you have up to ten percent of the mortgage amount can work in your favor in securing the lowest mortgage rate possible.
Low interest mortgages can save home owners thousands and thousands of dollars over the length of the mortgage. It can also help you build equity faster as well. Joining a credit union can also help you get low mortgage rates. Also, a mortgage broker can help you get a better rate because they deal with a number of mortgage lenders. The key is to shop around!