How To Get A Favorable Mortgage Rate

Dated: 08/05/2014

Views: 744

The Summer Buying Season Is Here: 3 Tips to Help You Secure a Favorable Mortgage Rate

The best way to ensure you get a good rate on your mortgage is to become an informed buyer. The more you know about mortgages, the more you’ll be able to save, and that doesn't just mean knowing where to find the best interest rate.While interest rates play an important role in determining the price of your mortgage, there’s always more to a mortgage than just the interest rate. Here are three things you need to know about mortgages to make sure you secure a favorable rate.

Understand The Fees Involved – And How To Avoid Them
Aside from the interest rate, the biggest factor affecting the price of a mortgage is often the fees involved. These fees won’t always be easy to find, so you might have to do some homework if you want to compare fees charged by different lenders.Sometimes, it’s possible to have these fees waived or removed. For example, if you end up moving your mortgage from one lender to another, the original lender may have some sort of mortgage pre-payment penalty. You’ll want to make sure the terms of your existing mortgage loan don’t include fees like this before you refinance.
Understand How The “Lock-In” Process Can Affect Your Interest Rate 
When you get a quote for a mortgage, each lender will offer a “lock-in period” in which the lender guarantees the interest rate for your mortgage stays the same. Because interest rates fluctuate so often, this “lock-in period” ensures that you end up paying the same rate you were initially offered should you choose to take out a mortgage with that lender.If you need a longer lock-in period of two months or more, many lenders will charge a higher interest rate for that provision. For this reason, it’s a good idea to be sure about the closing date of your sale so you can avoid missing out on the lock-in period or being forced to ask for a rate-lock extension.
Understand How Your Credit Score Affects Your Mortgage Rate
Generally, a better credit score means a better mortgage rate, but it’s important that you don’t damage your score while you’re shopping around for mortgages.Every lender will want to know your credit score and see your credit history. The good news is that every inquiry of the same tyep (mortgage in this case) will only count as a single inquiry on your score.  However, if you have other types of credit pulled, like furniture or auto financing, then too many inquiries into your credit history can lower your credit score.  
Your best bet is to hold off on any additional financing until your home purchase loan is completed.Of course, it’s always important to shop around and compare rates when you’re looking for the best mortgage deal. And now that you know these extra pieces of information about how mortgages work, you should have an easier time differentiating between a good mortgage rate and a bad mortgage rate. A mortgage rate that looks good at first could end up being a bad mortgage rate in the end because of hidden fees and other cost factors.To learn more about finding the best mortgage rates, give your trusted mortgage professional a call.
Posted on Behalf of Tommy Bearint with Waterstone Mortgage.  Contact Tommy at 813-786-1941 or tbearint@waterstonemortgage.com for more details, or apply online at www.MortgagesByTommy.com.
Blog author image

Michael Valdes

Realtor Michael Valdes was born in Tampa Florida and has lived and worked in the Tampa Bay area his entire life. He first got into the real estate industry working for large corporations such as JPMor....

Want to Advertise on this Site?

Latest Blog Posts

Where To Live In The South Tampa Area

If you are thinking about buying in South Tampa, the main consideration is what type of home and area you would like to have and live in:South Tampa Area:  The South Tampa area is one of the

Read More

You Do Not Have To Spend A Million Dollars To Have An Ocean View In Tampa Bay Area

Tampa Bay is one of the only areas left in the U.S. where you don't need $1M to get oceanfront property. There are many areas sought after were you can get a condo on the gulf under a million. The

Read More

Luxury Equestrian Home For Sale In Tampa Bay FL

Luxury Equestrian Home For Sale in Tampa Bay FloridaCheck out this spectacular 2011 custom built 11,264 sq. ft. 4.71-acre gated luxury estate with 4 bedrooms, 4.5 bathrooms, 5,500 heated sq. ft. and

Read More

Indian Rocks Beach Condos For Sale

Indian Rocks Beach Condos For SaleExperience the ultimate in luxury beachfront living from this penthouse residence at the Scopello Condo, located on the sugary sandy beaches of Indian Rocks Beach.

Read More