“I should’ve bought a house last year when interest rates were low…”
Maybe that’s true, but you can’t go back now! Don’t let the should’ves, would’ves, could’ves stand in the way of achieving your dream of homeownership!
We can’t predict what will happen in the real estate market over the next few months, but I can tell you this: Mortgage rates will eventually come down & when they do… more buyers will enter the marketplace making it a lot more competitive to get your dream home. Remember, if you find a home now with a payment you’re comfortable with, you can always refinance when rates do drop.
Here are 3 ways to get a better interest rate & save money on your next mortgage:
🔸Make a Larger Down Payment
The more money you put down on a home, the better your chances are of getting a lower interest rate on your mortgage. Making a sizable down payment will give you a lower loan-to-value ratio (LTV), & lenders will see you as less risky of a borrower since you have more stake in the property.
🔸Improve Your Credit Score
Your credit score plays a huge role in qualifying for a mortgage & can also help you get a better interest rate. Lenders typically view a high credit score as an indicator that you’ll be a strong & safe borrower. Improving your credit can help you to get a lower interest rate, as your lender will feel more confident that you’ll be responsible with new credit. Start by making payments on time, & paying down your credit balances to boost your credit.
🔸Look Into a Rate Buy Down
A temporary interest rate buy down temporarily lowers your interest rate for the first few years of the loan. This financing tool allows you to reduce the cost of your mortgage payment in exchange for an upfront cash deposit. The good news is that the seller pays for the buy down & in this market, we are seeing sellers agree to it all the time. Talk with your lender to learn more & see if a temporary rate buy down is a good option for you!
One of the first steps in the home buying process is to work with a lender to get your finances in order. If you need a local lender, send me a message & I’d be happy to connect you with a couple of my preferred lenders!
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