The process of buying or refinancing a home can be very overwhelming! Home ownership can be a smart long-term investment as long as you fully understand what you're getting into and take advantage of the resources available to you.
For most of us, a home is the most expensive thing we ever buy and the mortgage needed to make that purchase is a huge commitment not to be taken lightly. When shopping for a home, most people don't take the time to shop for the best mortgage rates, but this can make all the difference in your financial future. The same goes for refinancing.
There's no question about it, now is a great time to get a mortgage. Right now the average mortgage rates are at an all time low. According to National mortgage rate surveys, interest rates have dropped below 4%. Mortgage lenders are now quoting 30-year fixed rates approaching 3.25% for well-qualified applicants, and 15-year loans are in the 2%s. Rates are so good, in fact, that there was only one other time in history when rates were better, and even then, only slightly.
What will you need to take advantage of these low interest mortgage rates? Although lenders are increasingly willing to extend credit, the standards to get approved for a mortgage are high.
If you have ever been through the mortgage pre-approval process (or are thinking about starting) it shouldn't be a surprise to you that your credit score matters! The better your credit/FICO score, the better rates you will be offered. A credit score of 600 may get you approved, but a score of 720 or higher will get you the best rates and save you literally tens of thousands of dollars.
Example: someone with a credit score of 650, who gets a 30-year, $400,000 mortgage, could pay over $70,000 more in interest than someone with a 750 credit score. Over a lifetime of borrowing, the 100-point gap in scores could cost $201,712 in extra interest payments!
It can be frustrating to have to submit to the seemingly arbitrary lender standards, but with the right tools and resources, the benefits of having good credit FAR outweigh the costs of ignoring or rebelling against it!
Are you looking to purchase or refinance? If you need help finding real estate agents, shopping for mortgage rates and/or preparing your finances for this major step don't hesitate to use the best resources! We have helped thousands of people achieve their financial goals and get the best possible outcome! Not sure if we can help you? Contact us for a NO-RISK, COMPLETELY FREE credit analysis and consultation. No one is sure how long these rates will be available; make sure you take advantage of them. You've got nothing to lose but everything to gain.
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