Tips To Lower Your Interest Rate
Thinking of buying a home, and want to save money on your next mortgage? Don’t let the fear of rising interest rates keep you from making your move.
With interest rates on the rise, getting the best possible rate is even more important than ever — especially since it’ll be around for the next 15 or 30 years.
Keep in mind that your interest rate depends on several things, like your credit score, the value of the home, and your debt load. So, if you want to save money by locking in the best rate, here are three tips you can’t afford to ignore:
- Improve your credit score now. Get your free credit report from AnnualCreditReport.com. Look it over for accuracy and figure out what you need to do to bump it higher, like paying down outstanding balances.
- Shop around for lenders. Instead of going with the first lender you talk to, contact several and compare your options to make sure you get the best deal. And don’t be shy – let them know you’re shopping around.
- Boost your down payment. This may be a no-brainer, but the more you put down at the time of closing, the less you’ll pay on the loan. Plus, lenders view higher down payments as less risky loans, which could reduce your interest rate.
- Negotiate. Many home sellers on the market today are offering incentives like buying down the buyer’s rate. Having an expert agent on your side for both new and existing home purchases can help you navigate this alternative.
- Get creative. Talk to your agent (yes having an agent that understands today’s real estate market is a must!), and tell them your goals. A creative and well-informed agent can help you find savvy lenders that will work hard to explore options that fit your needs and increases your buying power.
- Think ahead. Experienced lenders can also help you create a long term plan to secure a new interest rate if the market adjusts. Future options such as refinancing your mortgage are an option.
The truth is – it is getting harder to save as rates are on the rise, but there are steps you can take today that will make a difference. If you’re on the fence about making a move here in North Texas, we have relationships with mortgage lenders that can help you learn about opportunities available to you to secure your best rate. Purchasing a home in Denton County is within your reach. Give Seay Realty Group a call today and let us put our relationships to work for YOU- and help you find and purchase the home of your dreams.
