Porcupine Real Estate Blog
How to Secure the Best Possible Mortgage Rate
Securing the best mortgage for your home may seem challenging, particularly for those who are first-time homebuyers. Here are three tips that you can use to get the best mortgage rate at any time:
- Find Ways to Improve Your Credit Score. Your credit score likely will influence your mortgage rate. However, those who track their credit score closely can improve this score over an extended period of time. That way, when the time comes to secure a mortgage for a new home, you'll be in a great position to get the best mortgage rate possible. Try to check your credit score regularly. You can do so quickly and easily, as you're entitled to one free copy of your credit report every 12 months from each of the three nationwide credit reporting companies (Equifax, Experian, and Trans Union). The most important thing you can do to improve your credit score is to focus on paying off any outstanding debt.
- Take Advantage of a Shorter-Term Mortgage. Although you may consider a variety of mortgage options, a shorter-term mortgage may allow you to pay a lower mortgage rate for a shorter period of time. Remember, just because you choose a 15-year mortgage over a 30-year mortgage does not mean you will wind up paying twice as much for your mortgage payment each month. A 15-year fixed-rate mortgage will have higher principal and interest totals than a 30-year counterpart, while the insurance and tax fees associated with both types of mortgages will remain the same.
- Look at All of the Lending Options That Are Available. Your lender will review all the loan programs for which you qualify. Some programs require zero down, and will thus have a higher monthly payment, so it's important to review different scenarios to find the loan that will work best for you.
Find a mortgage rate that works for you, and you may be able to save money over the life of your mortgage.