Lower Mortgage Interest Rates - 4 Tips

Lowering the interest rate on your mortgage just aTip #3: Refinance after paying down some of your
couple of points can save you $1,000s in annual debtloan: If you are able to apply some of your savings to
payments. Here are 4 tips for getting a lower rate.your mortgage, this will get you a better rate than you
Tip #1: Use an online service to compare rates: If youhave now. This is because your loan-to-value ratio will
already have a mortgage and are looking to refinance,improve. In other words, you will be borrowing less
start by asking your current lender if they are willing tomoney relative to what your home is actually worth;
refinance your mortgage at a lower rate. Whether orthis fact will almost surely result in your qualifying for a
not you currently own a home, be sure to takebetter interest rate.
advantage of any of the available online sites thatTip #4: Improve your credit score: If your credit score
allow you to compare mortgage rates from multipleis too low to qualify for better interest rates, there are
lenders. Pay attention to all of the relevant detailsconcrete steps you can take to improve your score.
rather than just judging the lenders based upon theirEven an improvement of 50 points can save you
interest rates alone.$1000s annually in debt payments. Start by pulling your
Tip #2: Keep track of changes in national housingfree credit report (go to Annual Credit Report Request
rates: The national housing rates fluctuate frequently.Services online) and find out your score. Then, take the
Before rushing into a mortgage, spend a few monthsnecessary steps to improve your score.
tracking the rates to get a feel about which way theyYou can qualify for better mortgage interest rates by
are trending. If they are on their way up, it may be ashopping multiple lenders, keeping your eye on national
good idea to borrow now. If not, you might want tohousing rates, refinancing after paying down some of
wait a while. While nobody can predict where rates willyour existing mortgage, and improving your credit
go, staying on top of current rates will give you anscore.
edge in terms of the timing of taking out a loan