How to get the lowest interest rate on your mortgage
With interest rates still low and property prices still with a lot of upside in Irving, Texas, and most other places, now is a good time to look at buying a home. If you do so, you want to ensure you get the lowest mortgage rate possible. Here are a few tips to do so.
Good credit score
The most important factor in getting the lowest interest rate possible on your mortgage is having a good credit score. Most lenders require a score of around 760 or so to get the best rates. If your score isn't quite there, you might want to boost it a bit before applying for your mortgage. Bringing past due accounts current and paying down debt are two ways you can boost your score fairly quickly.
Paying points
If you have the top credit score and qualify for the lowest rate, you still may be able to lower the rate by paying points. Points are upfront payments you make to lower your interest rate. One point is equal to 1 percent of your mortgage and will lower your rate by 0.25 percentage points. You need to make sure you will be in your home for several years to recoup the money spent on points, though.
Shorter term
if you can afford higher monthly payments, you might want to look at getting a 15-year mortgage instead of a 30-year one. The 15-year mortgage usually has a rate about 0.5 percentage points lower, and the shorter term means you will pay much less in finance costs. To know more click on irving texas real estate.
With interest rates still low and property prices still with a lot of upside in Irving, Texas, and most other places, now is a good time to look at buying a home. If you do so, you want to ensure you get the lowest mortgage rate possible. Here are a few tips to do so.
Good credit score
The most important factor in getting the lowest interest rate possible on your mortgage is having a good credit score. Most lenders require a score of around 760 or so to get the best rates. If your score isn't quite there, you might want to boost it a bit before applying for your mortgage. Bringing past due accounts current and paying down debt are two ways you can boost your score fairly quickly.
Paying points
If you have the top credit score and qualify for the lowest rate, you still may be able to lower the rate by paying points. Points are upfront payments you make to lower your interest rate. One point is equal to 1 percent of your mortgage and will lower your rate by 0.25 percentage points. You need to make sure you will be in your home for several years to recoup the money spent on points, though.
Shorter term
if you can afford higher monthly payments, you might want to look at getting a 15-year mortgage instead of a 30-year one. The 15-year mortgage usually has a rate about 0.5 percentage points lower, and the shorter term means you will pay much less in finance costs. To know more click on irving texas real estate.