Buying a home is one of the most significant purchases a person will make in their life. Getting a good mortgage rate is extremely important!
Here are some tips to get the best mortgage rate:
- Have a good credit score. The higher the credit score, the better the mortgage rate.
- Save money! Ideally, try to save 20% for the down payment.
- Be steadily employed. Working for the same employer for at least 2 years shows lenders you have steady earnings, which may give you a better mortgage rate.
- Know the difference between fixed rate vs ARM. Fixed rate mortgages keep the same interest rate over the entire life of the loan. Adjustable-rate mortgages (ARM) rates change over time.
- Decide if you want a 15 year vs 30 year mortgage. 15 year fixed rate mortgages will have higher monthly payments, but you also could save thousands of dollars in interest.
- Research multiple lenders. Shop around and so some research to make sure you’re getting the best interest rate for your situation!