Getting the best mortgage rates, San Diego means a lot as what you get will have a significant impact on your finances in the long run. However, with so many lenders saying they’ve got the best mortgage options available, how can you know you are getting an offer that every good-paying client deserves?
While there is no perfect formula for getting the best mortgage rates, San Diego, the following tips have been proven to be helpful to get the best one available.
Compare current mortgages – The first step to finding the best mortgage rates in San Diego is to compare the current rates being offered in the market today. This should not be that difficult considering that there are lots of comparison sites available online. Comparing current rates will give you a substantial idea of the prevailing prices, but it also allows you to build your list of prospects.
Work on the factors affecting mortgage rates – There are several factors affecting mortgage rates. Make sure you know them well and make your best effort to improve your status in each area.
Here they are:
The FICO credit score -In simplest terms, the FICO score refers to the method that quantifies and evaluates a person’s creditworthiness. The best mortgage rates go to those with a FICO score of 760 or higher. If your score is lower than that, no worries as there are ways to improve it. You can start improving your FICO score by doing the following:
The price of the home and the amount of the mortgage – The cost of the home and the amount financed will also have an impact on mortgage rates. Mortgage loans fall primarily into one of these three categories – Conforming, Super Conforming, and Jumbo. If you want the lowest possible interest rate, consider a conforming loan (ask your mortgage broker to learn more about these items)
Property Location – Property prices also vary based on location, so make sure you shop around from different lenders to find one having the best offer for the location you are targeting.
The amount of your down payment – Here’s the thing you should know about down payment – it is almost always inversely proportional to interest rates. That is, the higher the down payment, the lower the interest. Experts recommend putting a downpayment of 20% or above to increase your chances of getting the best rates.
Of course, there are other factors affecting mortgage rates not listed above, make sure you ask your expert mortgage broker to learn more about those items.
HomePlus helps clients find the best mortgage rates, San Diego. Contact us at (800) 958-7587 for inquiries.