The low-interest rates can save millions of dollars over a specific period of time on your loan. They also help to reduce the total amount on your monthly payments. Hence, it is good not to make a compromise with your mortgage rates.
However, to get the best mortgage rates in 2019 you must have a good credit history. In addition to this, you must also be aware of the different loan rates available in the market as well as know the ways of getting Government supported home loans.
Try some following useful and effective ways that could help you get the lowest mortgage interest rates in Utah to fulfill your dream of purchasing a house:
Compare different rates with different lenders
To know and compare different rates in the market get at least 4 or 5 mortgage quotes from different lenders. For this, you can apply with various online mortgage lenders. This would help you know not only the interest rates but also the fees each lender charges.
Increase the points of your credit scores
Higher credit scores help a lot to lower your interest rate on a mortgage. Hence it is important to increase the points of your credit scores before applying for a loan. Here are some simple and effective ways to maximize your credit scores in a short period of time.
1. Pay off the credit card balances
If you have excessive debts on your credit cards, your scores would minimize. The “credit utilization ratio” which is the amount of your usable available credit on the credit accounts makes up approximately 30% of your FICO scores. So, it is necessary to pay off the balances fully. In case you are unable to do so, try to get the balances under 15% at least.
2. Remove your collection accounts
The collection accounts also put a negative impact on your credit scores. Thus, it is good to remove them timely. This could be done through Credit Bureaus. They verify the account with a creditor in between 30 days or would clear away an account from your report.
3. Be an authorized user
If your family member or some friend has an account of a credit card with a good payment history, you can add yourself to their accounts as an authorized user. After adding yourself in their account, all of their account histories will be visible on your credit report. The authorized user account is figured into a scoring algorithm that would increase the points of your scores. You also need not having your own card. An account owner can remove you as an authorized user after closing of a loan.
Use the mortgage quotes for negotiation
Utilize mortgage quotes to get negotiation on mortgage rates. Take a quote from one lender to another and ask them to beat it. Do this until you get a good amount of saving. This will help you get the best available mortgage rates. You can also negotiate closing costs as well as origination fees
Apply for Government secured home loans
The Government secured loans are those through which a lender get financial support from the Government in case of borrower’s default. They are available with lower mortgage rates in comparison to conventional loans. Some of them are:
1. VA Loans
If you are a veteran or a military service member, you can qualify for VA loan. You can obtain it without paying a down payment and mortgage insurance premiums. In addition to this, they are available at minimum interest rates and low closing costs.
2. FHA Loans
These loans are available with low down payment and minimum credit scores. They are used by most people due to their flexible qualifying guidelines and good rates.
3. USDA Loans
This loan program is created by the U.S. Department of Agriculture for people living in country’s rural areas. If you are a villager, you can obtain this loan with 100% financing and without any down payment. Loan rates and mortgage insurance are also low in it.
Conclusion
The low mortgage rates on your loan can help you save lots of dollars. Comparing the quotes of multiple lenders and using them for negotiation purpose could help you get the best possible rates. To keep your credit scores high, pay down your credit cards balances and remove your collection accounts timely.
