For many people, purchasing a home means taking on a mortgage payment. But how can they get the best mortgage interest rates for their purchases? Steve Butcher Sr., Esq. is a seasoned residential real estate lawyer in Rochester, NY, who wants the public to know how to save thousands of dollars in mortgage interest.
3 Steps to Finding the Best Mortgage Interest Rate
1. Consider a Shorter Term Loan
Traditional 30-year fixed rate mortgages typically have higher mortgage interest rates than 15-year fixed-rate mortgages. Keep in mind that while interest rates are lower for 15-year mortgages than for 30-year loans, the shorter overall payment period results in higher monthly payments. Adjustable rate mortgages offer lower interest rates than fixed-rate loans, but have less payment predictability.
2. Boost Your Credit Score
Borrowers with credit scores that dip below 740 should expect to pay higher rates, and lenders charge higher rates for each 20-point increment below that number. Ways to raise scores include making timely bill payments, paying off debts, and checking and correcting credit report errors. Ask a residential real estate lawyer for help with the process.
3. Make a Larger Down Payment
House lawyers know that loan-to-value amounts influence interest rates, and the larger the down payment, the lower the rate. Aim for making a down payment of 20 percent or more, which also saves money by eliminating the lender’s requirement to purchase mortgage insurance.
At Steve Butcher Sr., Esq., wise residential real estate lawyers will advise you about these and other ways to find the best mortgage interest rates for your next home purchase or mortgage refinance. Rely on these real estate attorneys to guide you in selecting a mortgage that fits your goals, needs, and budget.
Before buying or refinancing your home, consult a real estate attorney at Steve Butcher Sr., Esq., in Rochester, NY. Call (585) 263-2444 for an appointment with a house lawyer, visit their website for more information, and follow them on Twitter.