When shopping around for home loans, we zero in on those that offer lower interest rates. Lower interest means an opportunity to save. With that said, here are some things you can do to increase your chances of getting lower mortgage rates in Flagstaff, AZ:
- Improve your credit score: A higher credit score shows lenders that you are a low-risk borrower and can lead to lower interest rates. You can do it by paying your bills on time, reducing your debt-to-income ratio, and avoiding applying for new credit right before your loan application.
- Shop around: Don’t settle for the first mortgage rate you come across. Shop around and compare rates from different lenders. You can also use online tools to compare rates and fees.
Increase your down payment: A larger down payment reduces the amount you need to borrow, which can result in a lower interest rate.
- Consider a shorter loan term: A short-term loan typically comes with a lower interest rate, as lenders assume less risk. Keep in mind that a shorter loan term may mean higher monthly payments.
- Consider paying points: Paying mortgage points (also known as discount points) upfront can lower your interest rate over the life of the loan. Each discount point typically costs 1% of the loan amount. For instance, if you take out a mortgage of USD 100,000, one mortgage point will cost you USD 1,000. The bottom line is that you do the math to determine if it’s worth it.
- Get pre-approved: Getting pre-approved for a mortgage can help you lock in a lower interest rate. Pre-approval also shows sellers that you are a serious buyer, which gives you an edge in a competitive market.
Are you looking for a mortgage company that may help you get the best from the available mortgage rates in Flagstaff, AZ? Contact HomePlus Mortgage today.