There really are not big secrets to getting low mortgage loans interest rates, but there are some things you may not have considered in the past. In this article, we will explore the way to keep your payments at the lowest levels possible, without simply extending the length and terms. While extending payments to over 30 years, or interest only options may be appealing in terms of monthly payments, you will pay much more over the course of the contract. To combat this, it helps to know how to get low mortgage loans interest rates for traditional lengths of time. You will save a ton of money this way.
Big Down Payments
Its no secret that bigger down payments can decrease the amount you have to pay in interest rates. This is key to getting low mortgage loan payments without extending the length of the contract. For those that already own a home, the equity in the house may suffice. It will depend on your lender and the standards they have.
First time homebuyers, WHEDA for those living in Wisconsin, allow first time homebuyers to get super low terms . Others states use different names, but the process is the same. For most of the government housing assistance programs, you will be able to get information on them, along with applications, from local banks. Simply ask what types of grants and programs are available to get super low mortgage loans and interest rates on your home. You can save a ton of money this way.
Poor Economic Times
Poor economic times are the best times to buy a house, assuming you are secure in your job. At the time of this article, the housing market is crashing, which makes the purchase price more affordable. It also forces the government to drop interest rates to spur along the economy, which can lead to low loan payments on your mortgage.
Some banks will let you buy points to keep the terms at the lowest levels possible. This can help you save money over the course of the home buying contract. Use some caution since spending money upfront may negate savings over the course of the contract.
Low mortgage loans interest rates can be found when you shorten the length. Rather than going for 30 year terms, try to see if you can afford the payments at 15 or 20 years. You will save a ton of money over the course of contract with the lender. Surprisingly to some, the payments do not increase that terribly much each month when comparing 30 years to 15 years.
This one is not a surprise to anyone, or at least it shouldnt be. Having a great score will increase your favor with the lender. If you are looking for low mortgage loans interest rates, this will be super important.