How to Get a Low Rate on a Mortgage

Over the life of a loan you can save thousands of dollars if you negotiate a low rate on your mortgage up front. Here are some tips to help you get a low interest rate on a mortgage.

Difficulty: Moderately Challenging

Instructions

1. 
    

   The key to getting a low mortgage rate is to get lenders to compete for your business. Bankrate.com is a good place to get an idea of where mortgage rates are.

2. Call several lenders and have your financial information ready to share.
   A high credit score and a substantial downpayment will help you get a lower interest rate. Most lenders require 10% down, but if you have a large down payment you are eligible for a lower rate.

3. 
    

   Remember that interest rates can fluctuate throughout the day. They may go up or down.

4. If your loan for a single family home is greater than $729,750 you will need a jumbo loan which is pricier than a standard loan.

5. 
    

   Talk about your needs with the different lenders you have contacted and see if you qualify for special programs.

6. 
    

   Lenders need business right now so you are in a great position. Just remember to read the fine print.

Tips & Warnings

• The lowest rate does not mean the best service. Be careful of lenders that do not return phone calls etc.
• Always read the fine print and if you don't understand it, have someone read it that does. You want to be able to rest easy at night, not worry about losing your home.

[maryanne09]

on 10/5/2009 Great article on How to Get a Low Rate on a Mortgage! 5*'s and a recommend! :o)

[haileyerickson]

on 8/25/2009 Thanks for the tips love the pictures.

[wefourmoores]

on 3/26/2009 Great tips - thanks for the advice!