Lowering the interest rate on your mortgage loan by even a single percentage point can save you tens of thousands of dollars in payments. Following are some tried and proven ways to get a low-interest mortgage loan.
Boost Your Credit Score
There are a number of factors that determine your credit score, including the length of time you have used credits, the number of accounts you have open and the amount of money you owe in payments. However, it is your payment history that has the biggest impact on your score. Make all payments on time and save up to pay back past debts before taking on a home loan. Doing so will boost your score, making it possible for you to get a low-interest rate mortgage loan.
Choose a Short-Term Loan
It’s often easier to pay back a 30-year mortgage loan than it is to repay a 10 or 15-year loan. However, paying a loan off earlier can save you tens or even hundreds of thousands of dollars in fees.
Research Your Options
There are numerous mortgage loan options on the market, so do some research to see which one is best for you. If you have served in the military, are buying a home in a designated rural area and/or have a low income, you may qualify for special mortgage loan options. Talk to a mortgage lender in Nashville about your personal situation to discover if you can obtain special forms of assistance.
Consider Locking in the Loan
If there is a good chance that mortgage loan interest rates will rise in the near future, consider locking in your interest rate when first applying for a loan. Doing so will ensure that you get the best possible deal even if interest rates rise before your paperwork is processed.
Mortgage Investors Group is the leading mortgage lender in Nashville and other cities in Tennessee. The company offers a wide array of mortgage loan and refinance options to make it easy for just about anyone to obtain funding to buy a new home. Get in touch with any one of our mortgage officers to learn how to apply for a low-interest mortgage loan either in person or online.