4 Tips for Getting the Lowest Mortgage Rate
Whatever time of life you find yourself, picking up a mortgage is no little step. This is a big decision and comes with things such as monthly payments and interest rates. If you find yourself wondering how to get the lowest mortgage rate, look no further. Here are four tips that will help you get the lowest mortgage rate you can.
Fixed versus adjustable rates
Your first step will be to decide which of the two main types of mortgage rates is going to benefit you in the long run: fixed or adjustable. With fixed rates, you pay a consistent rate for the duration of your mortgage, which is nice when rates and other costs change or fluctuate; this can stink though if rates lower later down the road. With adjustable rates, you are making a bit of a gamble; the rate will be locked for a given time, but after that it can go lower or the higher depending. Private Mortgage Lenders Toronto can help you make the best decision.
What is your credit?
As with any financial venture, having good credit is going to work in your favour. The lower your score, the more likely your mortgage rate will rise. If your credit is not so great, you can perform damage control before asking for the mortgage; if this is not possible you should not hide it or try to avoid giving certain information. Some Mortgage Lenders Toronto are willing to work with you if you are upfront and don’t try to hide anything.
Bigger down payment
If you pay more at the start, the less you have to pay later; this works for the mortgage payment itself as well as the interest rate. For the Lowest Mortgage Rates Toronto, you will want to make the down payment the most beneficial. While it is common to pay the minimum amount at the start of your payments, putting more into the initial down payment will help in the long run as you see the lower amount of interest that you pay. A Commercial Mortgage Broker in Toronto can help guide you as you move forward.
Paying for points
A Mortgage Broker in Toronto may or may not suggest paying for points, meaning that you pay a certain amount of the loan in exchange for the interest rate lowering. There are ups and downs to this method as with any other. There are positive points where your rate is lowered, but there are also negative points where the lender reduces the fees for a higher ongoing rate.
Getting a low mortgage rate is going to take a bit of work on your part. Go into the situation with your eyes open to everything, being mindful of the here and now as well as what may or may not happen in a few years.
*courtesy of Sherwood Mortgage Group