If you’re like many people buying a farm or house for sale in Northern Florida, you want to know how to get the best possible mortgage interest rate – you’ll save money over time.
So where do you start?
How to Get the Best Mortgage Interest Rate
Getting the best mortgage interest rate has a lot to do with your credit score. The higher your credit score is, the better the rates your lender will offer you. You could save thousands of dollars over the life of your loan, so here’s what you can do:
- Pay points on the loan
- Shorten the term of your loan
- Consider an adjustable-rate mortgage
- Boost your credit score
Pay Points on the Loan
Discount points, which are equal to 1 percent of the total loan amount, can help you buy down your mortgage interest rate. That means if you’re buying a $200,000 home today, paying $2,000 extra right now to lower your interest rate can save you much more in the future.
Shorten the Term of Your Loan
Sometimes shorter-term mortgage loans result in lower interest rates, but they do mean higher payments in most cases. If you can afford that, it might be better – because you’ll save money over time.
Consider an Adjustable-Rate Mortgage
Adjustable-rate mortgages get a bad rap, but they’re right for some people. Usually, they offer a lower interest rate in the beginning; then, the interest rate adjusts based on the market. Remember, though, that you qualify for the loan based on the highest possible rate.
Boost Your Credit Score
Taking steps to improve your credit score can work wonders for the rates your lender is willing to offer you. Typically, lenders charge higher rates for borrowers who have credit scores under 740, so the better your score is, the better your offered rates will be.
Are You Buying a Home for Sale in Lake City?
If you’re moving to Lake City, we can help you find the perfect place to live. Call us at 386-243-0124 to tell us what you want from your home and we will begin searching right away.
In the meantime, check out the most popular Lake City home searches by exploring the links below.
