{"id":410605,"date":"2024-06-27T23:00:00","date_gmt":"2024-06-27T23:00:00","guid":{"rendered":"https:\/\/www.saipantribune.com\/?p=410605"},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-29T14:00:00","slug":"House-Hunting-Here-s-How-to-Secure-a-Lower-Mortgage-Rate","status":"publish","type":"post","link":"https:\/\/www.saipantribune.com\/index.php\/House-Hunting-Here-s-How-to-Secure-a-Lower-Mortgage-Rate\/","title":{"rendered":"House Hunting? Here\u2019s How to Secure a Lower Mortgage Rate"},"content":{"rendered":"

(StatePoint) If you\u2019re hesitant to buy a home right now due to high interest rates, you can use this time to learn how interest rates work, and to take steps to secure a lower interest rate when you are ready to buy.<\/p>\n

Defining Mortgage Rates<\/strong><\/p>\n

A mortgage rate is the interest rate you pay on the money you borrow to buy your house, and a lower rate increases your purchasing power. Even a small difference in your interest rate can make a big difference in your payments over the life of your loan. That\u2019s why it\u2019s important to watch mortgage rates closely when house hunting.<\/p>\n

Lenders<\/a> set a mortgage rate for each individual<\/a> based on several factors, including current market rates and individual credit<\/a> history. You can determine how much your monthly payments would be at different rates using Freddie Mac\u2019s Fixed-Rate Mortgage Calculator at myhome.freddiemac.com\/resources\/calculators\/fixed-rate-mortgages<\/a>.<\/p>\n

Improving Your Loan Application<\/strong><\/p>\n

Boosting your credit score is one of the best ways to improve your chances of qualifying for a loan<\/a> and lowering the interest rate you are offered. Some proactive steps you can take to build and maintain your credit include:<\/p>\n

\u2022 Making payments on time.<\/p>\n

\u2022 Using as little of your credit limit as possible.<\/p>\n

\u2022 Paying the full amount due, or at least more than the minimum amount due, on your credit cards.<\/p>\n

\u2022 Opening and maintaining credit accounts in your own name<\/a>.<\/p>\n

\u2022 Keeping only a few credit cards or credit accounts open.<\/p>\n

\u2022 Paying down debts<\/a>.<\/p>\n

\u2022 Reviewing your credit reports annually.<\/p>\n

\u2022 Disputing inaccuracies in your credit report.<\/p>\n

\u2022 Trying to have credit inquiries made strategically within a limited time period when comparison shopping for mortgages and loans.<\/p>\n

Lenders will also look at your debt-to-income<\/a> (DTI) ratio when making a decision about your loan application, as it is an important marker of your overall financial health. As a guideline, your monthly debt-to-income ratio should be 33% to 36% or less. Representing how much of your monthly income you are using to pay your debt, this handy calculator can help you determine your DTI: myhome.freddiemac.com\/resources\/calculators\/debt-to-income-ratio-calculator<\/a>.<\/p>\n

To learn more about smart credit management, use Freddie Mac\u2019s CreditSmart online courses found at creditsmart.freddiemac.com<\/a>.<\/p>\n

Shopping Around<\/strong><\/p>\n

In addition to improving your credit and reducing your DTI, you can also potentially get a lower interest rate and avoid certain lender fees by shopping around. Freddie Mac research<\/a> shows that similar borrowers may receive notably different rates based on the lender, and that homebuyers can potentially save $600 to $1,200 annually by applying for mortgages from multiple lenders. It\u2019s generally a good idea to get three to five quotes. During this process, you can use this Mortgage Worksheet to identify the best lender and mortgage option for you: myhome.freddiemac.com\/resources\/mortgage-comparison<\/a>.<\/p>\n

If you\u2019re in the market to buy a home, watch mortgage rates carefully. And when you are ready to buy, don\u2019t take the first mortgage offered. Be sure to shop around and ask about opportunities to secure a lower rate.<\/p>\n

Photo Credit: (c) PeopleImages \/ iStock via Getty Images Plus<\/p>\n

<\/p>\n


House Hunting? Here\u2019s How to Secure a Lower Mortgage Rate<\/p>\n","protected":false},"excerpt":{"rendered":"

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