- 1). Shop around. Don't feel compelled to use your "regular" bank for a mortgage. If you have good credit, shopping around can get you a slightly lower interest rate.
- 2). Pay a higher down payment. You often can successfully request a lower interest rate when you pay more money down.
- 3). Apply in the name of the person with the highest credit. If you are buying a home with a significant other, and your credit scores vary significantly, apply only in the name of the person with the higher credit.
- 4). Pay off the mortgage over less time. Many banks offer a lower rate on a 15-year mortgage, for example, over a 30.
- 5). Avoid PMI or private mortgage insurance. This is an additional charge per month, which is applied to all FHA loans and most private mortgages for which the buyer did not pay at least 20 percent down.
- 6). Buy points. Each point costs 1 percent of the mortgage and lowers your interest rate.
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