What you need to know in order to get the best mortgage rates
Fri May 20 00:00:00 AEST 2011
Getting a good mortgage rate begins with doing your homework. It's important to be aware of what lenders looks at when considering whether or not to give you a mortgage loan.
Finding the Best Mortgage Rates Begins at Home
How much can you afford to pay for a mortgage? Even if you know you can qualify for a mortgage loan well above the amount you need, can you really afford it? The current housing crisis in the United States is a prime example of what not to do when it comes to taking out a loan, don't take out a home loan that will over extend you. Remember to consider your financial situation for both today and tomorrow when securing a mortgage rate, especially mortgage variable rates which can start out at lower rates and then increase over time.
Are you trustworthy?
What is your credit rating? Mortgage rates are based on your credit rating, the more trustworthy you are viewed as being in the past when it comes to repaying debts, the more likely you are to be approved for more money or a mortgage loan. If your credit rating is low then you can expect to pay more for your mortgage loan and in some cases you may pay much more than someone with the same exact income but with good credit. If your credit isn't strong then you may want to just wait and improve it rather than paying higher interest rates for many years to come.
Make the right choice
Know your loan options-Knowing which mortgage loans are available to you can also help you get the best mortgage rates. You should thoroughly investigate your mortgage loan options and determine which one will prove most suitable for your needs. The most popular mortgage loan options include:
Fixed rate loans
Variable rate loans
Lo doc loans
Split home loans
Low rate home loans
Reverse home loans
Using the internet to find a mortgage company and working directly with an experienced mortgage broker are also two other ways in which you can help yourself find the best mortgage rates available. Working with a professional mortgage broker can also provide you with invaluable assistance in securing the best mortgage rates quickly and getting answers to questions you may have.
Contact a Choice Home Loans broker
Find a broker
Use our broker services search tool to find brokers available in your area
This article is written to provide a summary and general overview of the subject matter covered for your information only. Every effort has been made to ensure the information in the articles is current, accurate and reliable. This article has been prepared without taking into account your objectives, personal circumstances, financial situation or needs. You should consider whether it is appropriate for your circumstances. You should seek your own independent legal, financial and taxation advice before acting or relying on any of the content contained in the articles and review any relevant Product Disclosure Statement (PDS), Terms and Conditions (T&C) or Financial Services Guide (FSG).