How to Find the Best Mortgage Rates
Mortgage rates can change daily, and can vary widely depending on the borrower’s personal situation. The difference can mean tens of thousands of dollars over the life of the loan. Here are some tactics to help you find the best mortgage rate for your new home loan.
Many homeowners opt to refinance with the lender who they initially got their mortgage from, but that doesn’t always get them the lowest rate for their new home loan. To get the best rate for your refinance, try comparing offers from several different lenders.
The mortgage rate isn’t the only factor when it comes to the cost of your refinance. To find the best rate, compare each lender’s fees and closing costs to fully assess the cost of the home loan. You’ll also want to compare the total cost of the new loan to make sure the costs don’t outweigh the savings.
Improve Your Credit Score
Before refinancing your mortgage, it’s best get your credit score and get it in the best shape possible because your credit score is one of the biggest factors that affects the mortgage rate that you’ll be offered by lenders. A higher credit score will get you a lower interest rate for your home loan. Learn more about how to improve your credit score.
Consider Your Loan Program
Adjustable rate mortgage (ARM) and fixed rate home loans with shorter terms offer lower rates than the ever-popular 30-year fixed loan. If you can budget the higher monthly payment of the 15-year fixed or 10-year fixed loan, or if you’re comfortable with the possibility of your rate changing with the ARM, these options could help you get a better refinance rate for your home loan and pay much less interest over time.