Five Hacks that Ensure You Get the Unrivaled Mortgage Rates

With the mortgage rates dropping record low, the US housing market has witnessed huge rise inactivity. According to many, this move can fuel the slow economy suffering the impact of the pandemic. Currently, the fixed loan of 30 years has recently dropped to 2.86% from the earlier 2.93% - the lowest in the last five decades.

The institute handling mortgage in Wareham points out, this could be the right time to buy a house. Although job losses and shortage of inventory are pushing the prices up by a percentage, some simple hacks ensure you get unrivaled mortgage rates for your new home.

These hacks are suitable for everyone, whether you are taking your first mortgage or sixth, ensuring you save some real money in the long run.

1. Credit score review

Before everything else, analyze your credit score and credit reports provided by the three major credit bureaus - Equifax, TransUnion, and Experian. There are few paid and free tools offered by these agencies which can help you in understanding your credit score. Before proceeding any further, it is important to review the credit report and eliminate the inaccuracies.

P.S: There are a few agencies that let you soft check your credit report. These can help you in finding a rough estimate of your credit score and work around it.

2. Start saving for the down payment

Down payments can sweeten the deals and considerably bring down loan tenure further. Large down payments are always preferred by the lenders for obvious reasons. Putting 20% as down on a traditional loan, ensure you do not have to pay PMI premiums. The PMI pushes your monthly payments and increases the overall borrowing cost. With a larger down, you can avoid PMI premiums and get a cheaper loan. Also, higher downs assist in securing a lower interest rate.

3. Bringing down the debts

Debt to Income Ratio (DTI) is crucial towards saving money on your mortgages and loans. While working towards increasing your income is one option, working towards decreasing your existing loans could be another way.

Many homeowners tend to cut back on their existing expenses, like bringing down the monthly usage on the utilities or canceling expensive holiday plans. Also, carrying less debt on the credit cards ensures a boost in the credit score.

4. Go for a loan shopping

The lending and mortgage are a lucrative business, and you are a potential customer. To get the best deals, it is recommended to apply to at least three or four lenders before finalizing the deal. The lender is supposed to provide you with a rough estimate for the loan, interest rate on the mortgage, and the closing amount. Additionally, the key details like the cost of the loan in the first five years are also provided.

5. Working with the discounted points

The discounted points can help in reducing the interest rate for longer tenure loans. In the case of refinancing, the points might in turn reduce the value of the loan. Usually, one-point equals to 1% of the mortgage amount. Thus, making it a good benchmark.

Following these steps can help in reducing the interest in the mortgage, giving you unrivaled rates. With these steps, you can easily pay off your debts and live a stress-free life.

Looking for mortgage Wareham agencies? Then, PCT Federal Credit Union can help you in getting the mortgage at unparalleled rates. Visit http://www.pctfcu.org/ or call 508-291-0777 to know more.