![]() Improving your financial situation and choosing the right type of mortgage for your needs can help you get the best interest rate possible. As a bonus, you won't need a down payment for USDA or VA loans. These loans typically come with lower interest rates than conventional mortgages. If you're eligible, you might consider a USDA loan (for low-to-moderate income borrowers buying in a rural area), a VA loan (for military members and veterans), or an FHA loan (not designated for any particular group). To improve your DTI, pay down debts or consider opportunities to increase your income. Most lenders want to see a DTI of 36% or less, but an even lower DTI can result in a better rate. Your DTI is the amount you pay toward debts each month, divided by your gross monthly income. ![]() ![]() You can also pay down debts or let your credit age. To improve your credit score, be sure to pay all your bills on time. But the higher your score, the better your rate will be. Many lenders require a minimum credit score of 620 to receive a mortgage. Rates should stay low for a while, so you probably have time to save more. But the higher your down payment, the lower your rate will likely be. With a conventional loan, you may be able to put down as little as 3%. Here are some tips for landing a good interest rate on your mortgage: How to get a low interest rate on your mortgage Shop around for a lender who will offer the lowest rate based on your credit score and debt-to-income ratio, and the one that charges relatively low fees. A different company may offer you a better deal this time around. ![]() You don't necessarily need to refinance with the same lender you used for your initial mortgage. Rates are at historic lows right now, so it could be worth it to switch your current mortgage for one with a lower rate - especially if the new rate would be significantly lower.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |