It’s possible to lower your interest rate when you buy a home in North Florida – even when interest rates are higher than they’ve been in recent memory. This guide explains.
The Inside Scoop on Bringing Down Your Mortgage Rate
Here are five ways to get the best possible interest rate:
- Pay down debt
- Save a higher down payment
- Dispute errors on your credit report
- Pay for points on your mortgage
- Shop around with different lenders
Here’s a closer look at each.
Pay Down Debt
Before you even think about buying a home, focus on paying down your debt. This is especially important if you have high-interest credit cards or loans. When lenders review your mortgage application, they’ll take into account how much debt you have. The less debt you have, the better interest rate you’ll get.
Save a Higher Down Payment
It’s easiest to get a lower interest rate if you can save up enough money for a higher down payment. The more money you put down, the less risk there is that the lender won’t be repaid and so they’ll offer better rates.
Dispute Errors on Your Credit Report
When lenders review your credit report, they’ll see any errors that may be present. Make sure to dispute any errors or mistakes before you even start looking for a loan, as this can improve your credit score and help you get a better interest rate.
Pay for Points on Your Mortgage
Another way to bring down your interest rate is by paying points on your mortgage. A point is a fee to the lender that you pay when you get your loan. The more points you pay, the lower your interest rate will be.
Shop Around with Different Lenders
Finally, it’s important to shop around with different lenders and compare interest rates before settling on one. You’ll want to make sure that you’re getting the best possible rate, so take the time to get quotes from multiple lenders and compare them.
By following these five tips, you can lower your interest rate and make sure that you’re getting the best possible deal when buying a home in North Florida.
Are You Buying a Home or Land 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.
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