Admit it, everybody likes to save money in some way, and that would include qualifying for a lower mortgage interest in order to save a great deal of money over the LOL, or life of loan in financial parlance. So if you are seeking to save on the interest charged you on your home mortgage, consider the following ideas to guide you along the way.
Be aware of your credit score.
When planning to get a mortgage, you will want to ensure that you have good credit, which also ensures you qualify for the best interest rates. Mortgage lenders like to reward borrowers that pay off their bills in a timely manner. So with that in mind, you will want to religiously pay off your bills, which would make you more trustworthy in the eyes of lenders and improve the chances of them giving you a lower interest rate.
Cancel any credit card accounts you may have that are no longer in use.
Your mortgage interest rate may be negatively impacted if you have several credit card accounts in your name, even if a few of them have zero balance. Lenders see open accounts as potential for debt, which adds a risk of them not getting their money back. To balance this risk, they will often charge you a slightly higher interest rate.
Lock in that interest rate before closing the deal.
It would be very advisable to ask your lender to lock in a rate once you have found a low interest rate to your liking. You would want to do this due to the sheer unpredictability of interest rates - they could change between the time they were quoted and the time you finalize your mortgage.
Make the biggest down payment you can afford.
Putting a down payment from your savings on your house, lowers the amount you plan to finance, lowering the interest you will pay over the life of your loan.
Research, Research, Research!
You aren't obligated to settle on the very first lender you deal with. With the vast amount of online mortgage brokers, it is easy to compare offers and pick the company that offers you the lowest interest rate. Muster the confidence to tell any potential lender that you want to check your options first, or if they are able to match what the rest of the competition is quoting to you.
Be aware of your credit score.
When planning to get a mortgage, you will want to ensure that you have good credit, which also ensures you qualify for the best interest rates. Mortgage lenders like to reward borrowers that pay off their bills in a timely manner. So with that in mind, you will want to religiously pay off your bills, which would make you more trustworthy in the eyes of lenders and improve the chances of them giving you a lower interest rate.
Cancel any credit card accounts you may have that are no longer in use.
Your mortgage interest rate may be negatively impacted if you have several credit card accounts in your name, even if a few of them have zero balance. Lenders see open accounts as potential for debt, which adds a risk of them not getting their money back. To balance this risk, they will often charge you a slightly higher interest rate.
Lock in that interest rate before closing the deal.
It would be very advisable to ask your lender to lock in a rate once you have found a low interest rate to your liking. You would want to do this due to the sheer unpredictability of interest rates - they could change between the time they were quoted and the time you finalize your mortgage.
Make the biggest down payment you can afford.
Putting a down payment from your savings on your house, lowers the amount you plan to finance, lowering the interest you will pay over the life of your loan.
Research, Research, Research!
You aren't obligated to settle on the very first lender you deal with. With the vast amount of online mortgage brokers, it is easy to compare offers and pick the company that offers you the lowest interest rate. Muster the confidence to tell any potential lender that you want to check your options first, or if they are able to match what the rest of the competition is quoting to you.
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