Find Your Lowest Rate in a Few Easy Steps
Are you concerned with the possibility of rate hikes in regard to your home mortgage? With our expertise, we can help you tame a rising rate. When considering how to get the best rates, here are a few ways to ensure that all of your bases are covered, while you find the lowest interest rates possible.
Credit Scores Matter
Your credit score will serve as the primary source when factoring your mortgage rates. A solid measure of a good credit score is usually a score of 740 and above. This credit score will place you at the best possible rate across the board. When filling out a loan application, be sure you are providing honest and transparent responses to each question. This will alleviate the stresses of the truth surfacing at a later time during the loan process.
Placing a substantial down payment on your loan can also help lower your mortgage rate in the long run. A down payment of at least 20% of the sales price is a reasonable place to begin and can fundamentally decrease your rates. Choosing an Adjustable-Rate Mortgage (ARM) rather than a Fixed Rate Mortgage will allow for periodic adjustments to the interest rate on your note. A Fixed Rate Mortgage on the other hand, will maintain a constant rate during the entirety of the loan term.
How Often Do Rates Change
In short, the answer is five days a week. That is five days, each week on which your bank and their loan officers receive a fresh rate sheet. This rate sheet contains pricing for the day, which is then sent to brokers for a daily update.
Although price changes are not announced during the weekend, pricing can change between Friday and the consecutive Monday. Mortgage rates follow a similar suit to the Stock Market, or other various financial markets. That means, although the rates are reported only once per day, there is a possibility that mortgage rates could change more than once during the same day. All-in-all, your interest rate is never actually secure, until it is locked in, and you have received written confirmation from your lender.
No need to dread the rate change possibilities. Contact Shelly Roark today, and she will guide you through the steps, to be sure you don’t miss your best window of opportunity to lock in the best rate.
How to Use Your Mortgage Points to Lower Your Rate
Occasionally, it is possible to leverage your earned points, in order to maintain the lowest rate possible. However, using points is not a solution for everyone. Below you will find a quick-glance list of items that may affect your points:
- Credit Score
- Loan to Value Ratio
- Loan Amount
- Loan Term
To inquire further about points, and to know your best option, be sure to contact Shelly using the “Get in Touch” link below.