Mortgage interest rates are a hot topic. Even a fraction of a percent can seriously affect how much money you pay toward interest over the life of your loan. How can you score the lowest interest rate and ultimately save some cash?
We are committed to helping clients find a home loan that suits their needs, minus the financial uncertainty. Many factors determine your mortgage interest rate, but the three that we are going to talk about today are the most impactful.
Your Risk Profile
If the lender believes you are likely to miss mortgage payments or default altogether, you’ll have a higher interest rate than those who present with minimal risk. Here are a few things that make you a risky borrower:
- A low down payment
- A low credit score
- A short or flawed credit history
If purchasing real estate is in your future, there are things you can do to improve your risk profile. Start by collecting an ample down payment and reviewing your free credit report for errors. Our loan officers can offer more tips!
Type of Property
Some property types fetch a higher interest rate than others. Here are a few examples:
- Multi-family investment properties
- Vacation homes
- Manufactured homes
- Mixed-use properties
- Unusual structures, such as log homes or geodesic domes
Did you know that different lenders offer different interest rates? You shop around for cars, homes and other material items, but you probably haven’t thought about shopping for the best mortgage rate!
A recent study by Freddie Mac showed that borrowers who received multiple mortgage quotes ultimately received a lower interest rate. Remember this: You could be paying your interest rate for up to 30 years (unless you refinance), so it pays to take the time to explore your options!
Get the Lowest Interest Rate With MortgageDepot!
At MortgageDepot, we have access to multiple lenders and loan programs to help you find a sensible mortgage solution. We’ll do the shopping for you and guide you toward options that will save money today and in the long run.
Contact our loan officers today for a hassle-free mortgage experience!
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