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Your Guide to Interest Rates

For many home buyers, getting interest rates down is just as important as getting the right price on a new home. Well, the fed has recently lowered mortgage interest rates substantially.

However, depending on you circumstances, you may or may not be taking advantage of this policy change. In fact the credit scores that you see advertised likely aren’t the ones you’ll actually receive, those are simply the best case scenario.


So what do you have to do before you get access to the best interest rates available?


  1. Pay discount points, buy down interest rates


  1. Shorten the term- payments will be higher but interest rate will be lower, spending less money throughout the term


  1. If you have the time, improve your credit score- those with a score of at least 740 will get access to the best interest rates.


  1. Increase your down payment- one of the factors that directly impacts your interest rates is your loan to value ratio, increasing your down payment is the best way to keep this low.


  1. Be cautious of Adjustable Rate Mortgages, they have smaller rates for the first few years, but rise quickly after that period is over. You qualify for this loan based on the highest possible rate. These types of loans are perfect for people looking to flip houses or move after just a couple years.


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