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3 Tips to Find the Best Mortgage Rate

3 Tips to Find the Best Mortgage Rate

Is it true that good mortgage rates come to those who work for them?

Calculator with Paper and Pen

Like anything worthwhile, landing a great mortgage rate is going to take some effort. Affordable mortgage rates are a hot commodity – they don’t just fall from the sky into the laps of the worthy. Keep reading to learn what you need to know to get the best mortgage rate for your situation.

Two Types of Mortgages: Adjustable and Fixed Rate

Mortgages break down into two structures. An adjustable rate mortgage means that your interest will fluctuate over the years. Many homeowners choose to finance this way because it gives them a break on payments in the early stages of home ownership. The fixed rate mortgage has an interest rate that doesn’t change. Once you choose a loan style that works for your budget, you can start ironing out the details of your interest rate.

Use these tips to find the mortgage rate that works for your financial situation:

1. Shop Around.

This is essential no matter what kind of mortgage you want to finance. Knowing your options will allow you to play the market to your advantage. Mortgage providers want your business, so make them work for it. See if there are special offers available or competitive pricing that might work in your favor.

2. Improve Your Credit Score.

This is a huge variable in the world of mortgage loans. Taking time to improve your credit score before you submit an application will give you better options to choose from and put you in the bracket for a better interest rate.

3. Big Down Payment.

Especially if you have a less-then-perfect credit score, a sizable down payment can help make up the difference. It can qualify you for a better interest rate, and also help bypass mortgage insurance. Many lenders force you to purchase insurance if you have a small down payment.

Click here to get more information from our professional team at Midland Mortgage about securing your best mortgage rate.

Posted Oct 07, 2015 by Midland Mortgage Corporation