When looking for a mortgage loan to purchase a home, it is best to get the lowest interest rate possible to save money over the life of the loan. Mortgages are typically very large loans, and you want to avoid paying too much in interest. However, signs in your credit history can enable banks, credit unions, and other lenders to raise your rate. Hawaiian Tel Federal Credit Union is on your side, and they’ll work with you to get the best loan possible.

Here's what lenders are looking for when determining your mortgage loan interest rate:

• Your Credit Score: This is the primary factor that affects your interest rate. Your past credit history is the most accurate predictor of future credit behavior, with poor histories resulting in higher rates. Work on improving your credit score as much as possible before applying for a mortgage to get a better rate.
• The Size Of Your Down Payment: The down payment is the amount you pay toward the cost of the house before taking out a loan. The greater the percentage of your down payment, the lower the rate you'll receive. The logic is that you are less likely to default on the loan if you have more financial stake in the house.
• The Interest Rate Type: With fixed-rate mortgages, your interest rate will not change for the life of the loan, although they typically have a higher starting point than variable loans. With a variable rate loan, your rate will fluctuate with the market, as will your monthly payments.

Having a solid understanding of how mortgage loans work will allow you to receive the most favorable interest rate. When you’re ready to explore your mortgage options, call Hawaiian Tel Federal Credit Union on Oahu at 832-8700, toll-free at 1(800)272-5255, or visit their website for more information. You can also find the team on Facebook and Twitter.