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If you're refinancing or purchasing a home in Florida, it's important to consider the mortgage interest rate when taking out a home loan. Here are a few things you can do to get the lowest mortgage rate in FL when you refinance or purchase a home.
Always shop around if you're looking for the best rate. Mortgage rates can vary drastically depending on your mortgage lender or bank choice. Start the process by checking with your local lender, banker, and then your credit union. You can also compare mortgage quotes online. Make sure to compare the mortgage fees along with the interest rate.
Pick the best program
The program you choose may also determine your mortgage rate. For example, if you have low credit scores, a loan insured by the U.S. Department of Veteran Affairs or a government-backed mortgage, such as an FHA loan, might be right for you, but you'll pay an extra fee for insurance. When comparing loan programs, please pay attention to the annual percentage rate, as it factors all the mortgage costs, including the interest rate.
Consider a shorter loan term
Another way to lower your mortgage rate is to choose a shorter term to pay your mortgage. While many people prefer 30-year fixed-rate mortgages for their lower payment, the mortgage rates are higher than a shorter term, such as a 15-year fixed-rate mortgage. Also, if you're paying off your loan in a shorter time, you'll spend lesser on your monthly payment.
Make a bigger down payment
While you may qualify for a low or no mortgage, putting down a bigger down payment can help you get a suitable mortgage rate, especially if your credit score is low. The higher your down payment, the less risky you are to banks or lenders. A higher down payment also reduces your mortgage loan-to-value ratio — the percentage of your home's purchase price funded by the mortgage — this can help reduce your monthly mortgage insurance payment.
Lock in your mortgage rate
Once you've chosen your mortgage lender, program, and term, it's time to lock in your rate. Locking your rate means committing to the quoted interest rate, and the rate shouldn't change unless your loan program, credit score, or down payment changes. For example, your rate might change with a refinance if your appraisal is low.
Don't make changes before closing
Mortgage lenders will continue to vet your finances until the day you close the deal. So don't open new credit accounts, change jobs, or forget to pay your debts during the loan process. These blunders could result in a higher rate or a loan denial.
Contact Savvy Mortgage Services To Get The Best Mortgage Rates
Here at Savvy Mortgage Services, we serve the mortgage needs of homebuyers, homeowners, and investors in Florida. We specialize in mortgages for conventional home mortgages, refinance loans, reverse mortgages, FHA, and VA mortgage options. We've also worked extensively on cash-out refinancing and helped clients to lower their mortgage payments.
If you're looking for low-interest mortgage rates in FL, contact us at 786-527-0200 to get a quote.