“In this write-up, we take a look at 7 ways in which you will be able to find the best interest rates in Houston and this can mean a substantial saving at the end of your mortgage program.”
Mortgage is the way most Americans realize the dream of owning a house and the story is no different in Houston or other parts of Texas. In the last three decades, inflation in property prices has been much higher than average inflation and growth in income. Unless someone has left you a fortune, you would have to find a lender to own a property. When it comes to choosing the loan program, it all boils down to interest rates.
In fact, the only thing that would be ruling your mind while searching for a loan would be to find the best interest rates in Houston. But did you know that there are smart ways of lowering interest rates? Let us walk you through seven secrets of finding the best interest rates in Houston.
- Start Early – If you give yourself enough time with respect to choosing a mortgage program, you will be able to get it at the best interest rates. Thanks to the Internet, you can carry out research on the different home loan programs by sitting within the comfort of your homes. Ask around for suggestions from your friends and colleagues and you may unearth a lender with low rates that you hadn’t heard about.
- Close Existing Mortgages – If you aren’t in a hurry to own a home and have existing mortgages such as anauto loan or a student’s loan, then you should think of closing some of your existing mortgages. It immediately would improve your debt to income ratio and help you find lenders who are willing to offer you loans at attractive rates.
- Work With Experts – With the number of lenders offering home mortgage in Texas, you may find yourself clueless on which option to choose. In addition to this are the technical jargons and you may wonder which home loan program will suit your needs in the best possible ways. A mortgage consultant would use its expertise to help you make the right choice.
- Maintain Good Credit Score – If you have a good credit score, you will automatically qualify you for lower interest rates. The logic behind this is simple – all lenders look at credit score as ameasure of your creditworthiness. Also having a higher credit score increase your options in terms of choosing different loan programs. For instance, with a credit score around the 530 mark, you may only be restricted to FHA loan.
- Put More Money In – When you are willing to make a higher down payment, you will be able to bring down the interest rate on the mortgage. This is true for normal home loans as well ones over $417,000 which are classified as jumbo. Putting in more money reduces the risk for the lender and they reward you with lower rates.
- Lessen Loan Period – Traditionally, most borrowers would opt for a 30 years repayment period. Doing so, you would end up paying alarge sum of money as interest. While a longer payment period may sound more comfortable, it isn’t in your favor. Figure out what you can afford and shorten the loan period.
- Consider Refinancing – If you already have a mortgage and are paying interest rates higher than what is being offered in the market (rates are much lower than what were a couple of years or a decade back), you can consider refinancing your loan as this will reduce the burden on your monthly payments.
Now that you know the seven secrets of finding the best interest rates in Houston, you should immediately get in touch with a lending service company that can guide you to the right lender. These companies keep track of the best interest rates and can help you find the best plans for your needs and also those based on your eligibility criteria.
About Author:Joan Gallardo with his 18+ years of experience as Senior Loan Officer, is a wealth of knowledge in home mortgage and helps his clients in finding the best interest rates in Houston. He has been writing regular blog posts on home loans for bad credit in Houston and is widely followed by his audience.