Whether you are trying to buy a home or refinance a home, getting the best interest rates possible is always an important strategy. Some issues in buying a home are not within the control of the home buyer, but there are other issues that can be corrected or improved to help to obtain low interest home loans.
Improve Your Credit Score
It doesn’t take a long time to improve your credit score in some situations. Carefully go over your credit reports from the three monitoring bureaus and dispute any errors. This can be done on your own and can boost your score to provide a lower interest rate on loan.
Lower Your Credit Utilization Ratio
One of the big factors on your credit score that can impact your ability to get low interest home loans is the amount of debt you owe compared to the available credit. Consider paying off some of the cards, if possible, or even utilizing increases in spending limits to add to your available credit.
Look at VA/FHA and Special Programs
If you qualify for an FHA (Federal Housing Administration) or of a VA (Veteran’s Affairs) loan, it may be possible to get a very low interest rate on the loan and also require only a very small down payment. Some VA loans do not require any down payment, which will be important to take advantage of if you meet the criteria.
Don’t Take Out Cash
If refinancing to low interest home loans, avoid taking out cash in the form of home equity when doing the refinance. This will boost the interest rates offered and, in many cases, there are lower interest loans available through traditional types of lenders and loans.
Move To A Shorter Loan Term
Moving from a 30 to a 20 or a 15 year fixed rate loan will provide a lower interest rate. By doing this and not taking cash out, the homeowner can see a significant drop in interest rates that will help to offset the slightly higher monthly payments on the shorter-term loans.
To learn more about the low interest home loans offered at Guaranteed Rate, talk to our lending experts. More information is also available online at websiteAdd to favorites