4 Tips on Getting the Best Mortgage Rate

A mortgage is a loan in which property is used as a collateral. The borrower enters into an agreement with the lender after which the borrower makes payments for the loan in installments until the amount is fully paid. These loans are mainly offered to home buyers who may not have enough cash to do it. In your plan to take a mortgage loan, it is important to first assess the term dates, interest rates and the amount of payments per period before getting into it.  A lower interest rate can save you thousands or even tens of thousands of dollars over the life of the loan. Here are some simplest and most effective ways you can ensure you are getting the best mortgage rates.

Improve your credit score: Your credit score is the most important factor in determining your interest rate.  The higher your credit score, the lower the interest rate will be. Besides, a higher credit score shows lenders that you are less likely to default on your loan.  Therefore, it is important to ensure that your credit scores remain as high as possible. This can be achieved by paying off your credit cards balances, removing your credit collection accounts and getting added as an authorized account user.  Here are more tips on improving your credit score.

Use mortgage quotes to negotiate:  When shopping around for favorable mortgage rates, it is important to note that the lender’s quote is never fixed. In most cases, lenders increase fees and rates to increase their commissions.Once you get a mortgage rate, use it to negotiate the best mortgage rate. Take a quote from one lender to the other asking them to beat it.

Do sufficient rate shopping: Interest rates and fees varies with each lender. It is therefore important to apply with multiple online mortgage lender for comparison. FICO allows for multiple credit inquiries thus you should not be worried of lowering your credit scores,  searching and comparing multiple lenders cannot affect it.

Make a bigger down payment: You will get a lower mortgage rate if you put more money down while a lower down payment gets you to higher interest rates You will be on the safe side if you can pay at least 20% of the cost of your home first. However you can pay lesser down payment if you are dealing with private mortgage insurance because they accept as low as 5%.

When it comes to buying a home using mortgage loan, it is important to use your loan estimates to compare cost. Every lender should provide you with a statement of potential loan terms and cost before you commit. Secondly, do comparisons with as many banks and creditors as possible to shop for favorable interest rates. In this case, prioritize credit unions in your search because most of them are non profit lending institutions.

Do You Really Need a Realtor to Buy a Home?

There can be an enormous amount of confusion involved with buying a home. What can we afford? What can we expect to pay in taxes? Where are the good schools? What is the crime rate? Will the value of the home stay strong? Realistically, these are some good questions, but they are only the tip of the iceberg when considering the purchase of a home. So, listen closely. Below are the top four reasons to use a Realtor when purchasing a home.


Realtors are registered, certified professionals that are qualified to sell properties as an agent or broker. Unlike real estate agents (who are not necessarily realtors), there is a strict code of ethics that governs a realtor’s professional behavior. More importantly, only a licensed realtor can list your property on MLS systems, which is important for marketing properties.


Realtors also offer extensive skills and experience that you may not have. Not only will a realtor have insight into the process of buying and selling properties, but they will also have specialized information about the properties in their area. A realtor will likely specialize in particular kind of properties, or even particular neighborhoods or types of clients. This specialized skill will work to the benefit of their clients as these realtors will have insight into the market and the financial needs of their clients. More importantly, they’ll be able to use this information to help you buy or sell your home.


Realtors have access to a wide array of information about market conditions as well as neighborhood details. The most important benefit of working with a realtor is that they can work with your budget and your ideal property type to find real estate that matches your needs closely. They will also find comparable sales in similar neighborhoods so that you have a complete picture of what you should expect to pay for a home. Moreover, realtors will have access to information about particular properties that you may not be able to access. For example, a realtor can learn whether a property has recently been upgraded as well as whether there are other parties interested in the property.

Inside Information

From details about market conditions to relationships with other realtors, a professional realtor can give you the edge in the housing market. Realtors can give you sound advice about the price of properties and what to expect, but also about market conditions and whether they believe a property makes a good long-term investment. Plus, realtors know other realtors, so they’ll know when interesting, suitable properties become available so that you get the first crack at viewing or buying said properties.

Housing Market Tips