Thursday, September 17, 2009
Secure a Low Home Mortgage Interest Rate
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Learning how to get the best or lowest interest rates on a new home loan is simple and just takes a little bit of know how on how to impress the lenders. Basically, the lenders want to feel secure that you are a good borrower, and it will be safe to loan money to you. Securing a low home mortgage interest rate requires that you can show the following attributes.
1) Great, (Not Good), Credit Score. Before the crash in the real estate market and the mortgage industry, a credit score of 700 or more was considered stellar. This is no longer the case. Now, a credit score of 700 is considered good. In order to get offered the lowest home mortgage interest rates, you must now have a credit score of at least, 720. This may not sound like a big jump, but it can be very difficult to increase your score from 700 to 720. Soliciting the help of a good credit repair specialist is not a bad idea. Just know, it can take months, sometimes over a year, to improve your score this much. You have to decide if a lower rate is worth the time and effort you will be putting into improving your score.
2) Debt to Income Ratio. There is more emphasis placed on this number than today, than ever before. Lenders want to know that you do not have a lot of other debts to repay. They want to be first on the list. Your debt to income ratio is the amount of money you owe, compared to the amount of money you make. In order to improve your ratio, pay down credit cards, car loans, or any other interest accruing debts. If you can increase your income, of course this is a good idea and will improve your debt to income ratio.
3) Job Stability. Having the same job, or a job within the same industry, is a big plus. This shows stability to a lender and shows that you are not flighty. They feel better about your chances of remaining employed. Being in the same job for two years minimum, is recommended before applying for a new home loan.
Online Home Loans Directory
1) Great, (Not Good), Credit Score. Before the crash in the real estate market and the mortgage industry, a credit score of 700 or more was considered stellar. This is no longer the case. Now, a credit score of 700 is considered good. In order to get offered the lowest home mortgage interest rates, you must now have a credit score of at least, 720. This may not sound like a big jump, but it can be very difficult to increase your score from 700 to 720. Soliciting the help of a good credit repair specialist is not a bad idea. Just know, it can take months, sometimes over a year, to improve your score this much. You have to decide if a lower rate is worth the time and effort you will be putting into improving your score.
2) Debt to Income Ratio. There is more emphasis placed on this number than today, than ever before. Lenders want to know that you do not have a lot of other debts to repay. They want to be first on the list. Your debt to income ratio is the amount of money you owe, compared to the amount of money you make. In order to improve your ratio, pay down credit cards, car loans, or any other interest accruing debts. If you can increase your income, of course this is a good idea and will improve your debt to income ratio.
3) Job Stability. Having the same job, or a job within the same industry, is a big plus. This shows stability to a lender and shows that you are not flighty. They feel better about your chances of remaining employed. Being in the same job for two years minimum, is recommended before applying for a new home loan.
Online Home Loans Directory
Labels: home loan mortgage rate, home mortgage rate, home mortgage rate refinance, home mortgage rates, home mortgages rates
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