Daily News

MBA Urges Regulators To Avoid Invoking Suitability Standards
The Mortgage Bankers Association (MBA) recently made a preemptive strike against what it obviously perceives as the next threat against the mortgage industry - "suitability standards." Read more...

 

How To Get Lower Mortgage Rates

Mortgage rates are one of the most important factors one must take into consideration when looking at the various mortgage options. In most cases, the lower the APR on a mortgage loan, the less it will cost. This means that consumers should strive to get the lowest possible mortgage rates when applying for home mortgage loans. Here are a couple of steps you can take in order to qualify for low mortgage rates.

First of all you need to make sure that your credit score is high. Get a copy of your credit score and report before you apply for a mortgage loan, and make sure that the information it contains is accurate. If you find that your credit score is below 650, take some time to improve it. You can do this by lowering any credit card balances that are over thirty0five percent of the credit limit, making payments on time for a few months, and avoiding any applying for any new credits.

Besides one's credit rating, mortgage lenders will also consider one's debt-to-income ratio when determining one's mortgage rates. If you can, take some time and lower your total debt before applying for a mortgage loan. This will help you qualify for lower mortgage rates. Also, if you can co-sign with someone who has a job, this will effectively lower your debt-to-income ratio by increasing your total income.

Another way you can lower the mortgage rates on your loan would be to put a large down payment on the property. You need at least twenty percent in order to avoid a fee known as private mortgage insurance.

Remember, every percentage point that you add or subtract from your mortgage rates will represent thousands of dollars over the life of your mortgage. But the good thing is that there are things you can do right now to lower your mortgage rates. Take the time to do your homework, and soon you will be able to find a very affordable loan option for your needs.

Back to Articles