Monthly Archives: September 2015

How do you go about getting lowest mortgage rate?

Everyone is looking to have the lowest mortgage rate. If you ask a San Francisco mortgage professional, he or she will answer the following:



  • You should have a good credit standing. It is no brainer that one should have no credit. The higher your credit score, the lesser you need to pay. Remember that credit score make a difference on the interest that you will get. For a 30 year mortgage, it is matter of .2%. There are a few ways to improve your credit score but take note that it will take time. A sample is paying your credit card debt. You can also fix your credit report. Order this from an agency and see if there are errors. Correct the mistake or dispute if any but be sure to have documents
  • Make a huge down payment. This is sometimes overlooked and it is something that can greatly affect your mortgage interest rate. If you are refinancing, you will need 25% equity. Take note that you will need insurance for home loan. If there is a way to come up with a high down payment then you can do so.
  • You should pay to have points. It is the best way to lower down interest rate. Buying the points can be a good idea if you will plan to stay your home for a decade. You have to own this long enough to gain savings on the interest so that you can get back the amount of money you paid in points. Use a mortgage calculator so you can figure out the savings you will make every month if there are points.
  • Shop around with me. This is considered to be the most basic rule. Various lenders will provide different rates. You will not know what the lowest rates are until you get estimates from other lenders. Beware because some lenders are crafty when it comes to covering interest rate. At first they offer low rate but add a bunch of fees in return. They can include high charges. The best way to compare offers is by looking at Annual percentage rate. They are required to provide you with such information. It goes beyond the interest rate.

As a borrower, you will need to make an effort and give time when it comes to finding the best deal. This will be reward by huge saving in return.