Below are some basic, helpful tips for finding the right loan without hassle and heartbreak:
- Find the Lowest Interest Rate
Just a fraction of a point in your interest rate can add up to thousands of dollars during the term of your mortgage.
Good Credit, Bad Financing?
Even though good credit will help you secure a loan with a good rate; Good credit does not guarantee financing. Look for “pre-approved” offers and you will have to worry less about the approval process.
Explore your options!
Deals and terms can vary significantly from lender to lender. Don’t accept the first offer for financing right away unless you’ve done your homework. There are hundreds of options when looking for a loan. Look for the one that works best for you. Finding the best deal can mean a savings of thousands of dollars in interest payments over the loan’s term.
- Adjustable or Fixed-Rate Mortgage?
Although fixed-rate mortgages can provide you with a stable payment and interest rate, in the current economy, an adjustable rate might be better. Federal interest rates may continue to drop and having an adjustable rate will take advantage of this downturn. To that, if you are able to lock in a low-interest fixed-rate loan, this could be your best option.
Improving & Using Home Equity