5 Golden Tips on How to Get the Lowest Mortgage Rates
Buying a house requires a huge amount of cash. The cheapest decent house is estimated to cost around $250,000- $300,000. Majority of people who don’t have such cash readily available have a chance to borrow as a mortgage. There are many factors to consider before closing a mortgage deal. One prime determining factor is the mortgage rate. The mortgage rate determines your monthly repayments and the loan repayment period. The higher the rate, the bigger the amount of cash you repay monthly and the longer the loan life or period and vice versa. It is therefore imperative to seek the lowest mortgage rate in the market. It may also require working on a number of areas on your part to ensure that the lender will be willing to cut the deal with you at a certain rate. Here are a few key tricks to help you get the lowest mortgage rate in the market:
1. Strengthen your credit score
The first thing your lender checks when you apply for the home loan is your FICO credit score rating. If you have an excellent or a good credit score, it indicates that your risk of default is low and your rate of repayment is high. It can help you to qualify for a home loan easily and get better terms. Get your credit report from credit reference bureaus to know your score. If you have a credit score rating of above 760 then you qualify for the best mortgage rates in the market. If your score is lower, then the rate for the mortgage will be higher. Seek for tips to improve and maintain an excellent credit score rating if you plan to apply for a mortgage...
To read the full article, visit FinanceAttitude.com
Buying a house requires a huge amount of cash. The cheapest decent house is estimated to cost around $250,000- $300,000. Majority of people who don’t have such cash readily available have a chance to borrow as a mortgage. There are many factors to consider before closing a mortgage deal. One prime determining factor is the mortgage rate. The mortgage rate determines your monthly repayments and the loan repayment period. The higher the rate, the bigger the amount of cash you repay monthly and the longer the loan life or period and vice versa. It is therefore imperative to seek the lowest mortgage rate in the market. It may also require working on a number of areas on your part to ensure that the lender will be willing to cut the deal with you at a certain rate. Here are a few key tricks to help you get the lowest mortgage rate in the market:
1. Strengthen your credit score
The first thing your lender checks when you apply for the home loan is your FICO credit score rating. If you have an excellent or a good credit score, it indicates that your risk of default is low and your rate of repayment is high. It can help you to qualify for a home loan easily and get better terms. Get your credit report from credit reference bureaus to know your score. If you have a credit score rating of above 760 then you qualify for the best mortgage rates in the market. If your score is lower, then the rate for the mortgage will be higher. Seek for tips to improve and maintain an excellent credit score rating if you plan to apply for a mortgage...
To read the full article, visit FinanceAttitude.com