June 12th, 2021 7:12 PM by Jackie A. Graves
If you're looking to get a mortgage, your goal should be to lock in the lowest interest rate possible. After all, the lower the rate, the less your loan will cost you each month. And that means you'll have less interest to pay over the life of your loan. Imagine you're taking out a 30-year $200,000 mortgage. If you lock in a mortgage rate of 3.25%, you'll pay $871 a month for principal and interest on that loan. But if you manage to lock in a rate of 3.05%, you'll pay $848 a month instead. You'll also, with that lower rate, pay a total of $8,000 less in interest in the course of your 30-year repayment period.
So how can you snag the low-interest rate you want? Here are a few tips.
1. Boost your credit score
The higher your credit score, the more appealing a loan candidate you'll be, which means you're more likely to snag a competitive interest rate on your mortgage. There are several steps you can take to raise your credit score:
Not only can a higher credit score help you get a better interest rate on a mortgage, but it can also make it possible for you to qualify for other attractive financial offers as well, like a credit card with a strong rewards program.
Find out more about credit scores with the following guides: