These days, every penny you can save really counts, so it only makes sense that more and more Americans are looking for the lowest mortgage rates. There really is not secret to getting better interest on your home loan, it's all about your credit score and the banks you select. Okay, there are some other things that have an impact as well, but I'm painting with a broad brush right now. Let's take a look at how you can get the lowest mortgage rates on your next home loan. In fact, let's dive a little deeper than just choosing a bank and improving your credit score. How are the lowest mortgage rates determined?
Get a Copy of Your Credit Report:
We all know that banks look at borrower's credit score to determine how credit worthy the applicant is, and decide if they can get the lowest mortgage rates. If you don't have any idea what your score is, you really should find out. Not only will you find your score, but you'll also be able to dispute anything inaccurate in the report. In case you're wondering, credit inaccuracies are not that uncommon. In fact, a single false report could drop your score by over a hundred points, and keep you from getting the lowest mortgage rates possible. There is really no excuse for not knowing your credit score, there are plenty of avenues to get it for free. Plus, with a good credit dispute letter, you can boost your ranking by up to 100 points in 30 days.
Improve Your Score:
If you are able to dispute an inaccuracy on your report, the law is on your side. This will really help you get the lowest The agencies only have 30 days to prove that the claim was accurate. If they cannot, the negative mark is removed from your report. In addition, you should get all accounts out of collections, and make sure everything is current. This will make an immediate improvement, and it will help you decrease your interest. The lowest mortgage rates will likely save you thousands of dollars over the course of the loan. Many savvy borrowers spend the $20.00 per month to have unlimited access to their score, knowing that it will more than pay for itself with even a single car loan. Can you imagine how much you'll save on a home loan? What is a good score?
There must be a million different banks out there. What makes you think your current bank is that one in a million with the lowest mortgage rates? In all honesty, it's about as likely as winning the lottery. There is plenty of competition out there, so it only makes sense to play the field a little. If you simply cannot justify leaving your current bank, you still have an option. Simply show the bank the interest you can get from their competition and ask them to drop their interest. You can get the lowest mortgage rates by using competition to your advantage, even if you have no intent of using another lender. This really is one of the best ways to decrease your interest on a home loan.
Ask for the Lowest Mortgage Rates:
It really never hurts to ask. Simply try to negotiate with your bank. Even if you only get a reduction of a couple tenths of a percent, you'll save a lot of money over the course of the loan. It seems that people are always willing to haggle on a new car, but not on a home loan. It really doesn't make sense. Chances are, this is going to be the biggest investment you ever make, so get the lowest mortgage rates and save some money. If you have a good relationship with your bank, and a solid track record with your loans, they will likely do whatever they can to keep you as a customer.
Increase Your Income:
Okay, it's not as easy as it sounds....or is it? Working a second job, just 8 hours per week at $9.00 per hour would net about $300.00 per month. Banks look at the amount of money you make each month, and compare it to your monthly obligations. As you can likely guess, the larger the gap, the better the odds of getting the lowest mortgage rates. There are tons of ways to increase your income. In fact, I write articles on this site to increase my own income. Think outside the box, you're sure to come up with some ways to bring in more money each month and get the lowest mortgage rates available.
Increase Home Equity:
If you want to get the lowest mortgage rates, you will need to have some equity in the home. If you are purchasing a new home, the main way you can do this is to put money down. The more money you can put down, the lower the interest, in most cases. Banks look at something called "loan to value ratio." A better ratio, basically meaning more equity, will assure that the bank gets their money even if they have to foreclose on the home. Banks are all about risk, and when you have a good loan to value ratio, their risk decreases substantially. This is a key way to get the lowest mortgage rates. Those that are trying to refinance should make sure the paint is in good condition, and the overall condition of the home is good. In the case of a refinance, the bank is likely to send an assessor to determine the value of your home. You will be more likely to get the lowest mortgage rates is the assessor likes what they are seeing.
Raise Some Money:
If you don't roll up the processing fees into the loan, you may be able to get a slightly better interest amount. Who knew that selling some unwanted stuff could help you get the lowest mortgage rates? If you have some money in the bank, you'll be more likely to save money over the course of the home loan. There are a lot of ways to raise some quick money. You could have a yard sale, sell some "toys", or other unwanted items. Hey, the stuff collecting dust in your attic and garage may have more value than you think.