Saturday, November 26, 2011

Five Helpful Hints To Help You Qualify For The Lowest Mortgage Interest Rate Online

By Tiffany Nash

Getting a discount is something that a lot of us, perhaps everybody strives for, and one area where discounts can do you good would be by getting a lower mortgage interest rate. When taking out a home mortgage, there are different ways in which you can achieve this and pay as little interest as possible.

Know your credit score and what it means to you.

Good credit is the key to not only getting a mortgage, but to getting the best interest rates available. Those in the business of mortgage loans are more than happy to reward those borrowers who make their bill payments on time. So in order to qualify for a lower interest rate, it would behoove you to pay off your bills and treat this simple task as a mandatory obligation - a lower interest rate is sure to follow if you keep this in mind.

Close any existing credit card accounts that you no longer use.

Your mortgage interest rate may be negatively impacted if you have several credit card accounts in your name, even if a few of them have zero balance. Lenders see open accounts as potential for debt, which adds a risk of them not getting their money back. To balance this risk, they will often charge you a slightly higher interest rate.

Make it a point to lock in an interest rate before closing.

It would be very advisable to ask your lender to lock in a rate once you have found a low interest rate to your liking. You would want to do this due to the sheer unpredictability of interest rates - they could change between the time they were quoted and the time you finalize your mortgage.

Make a substantial down payment as long as you can afford it.

The interest paid over your LOL would be significantly lower if you make a down payment from your savings and make it as large as possible, thus lowering the amount to be financed.

Research, Research, Research!

You aren't obligated to settle on the very first lender you deal with. With the vast amount of online mortgage brokers, it is easy to compare offers and pick the company that offers you the lowest interest rate. Muster the confidence to tell any potential lender that you want to check your options first, or if they are able to match what the rest of the competition is quoting to you.

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