Home Mortgage Rates And Services
Mortgage interest rates vary based upon many factors, particularly the borrower's income level, credit history and credit score. It is especially important to understand credit reports and scores so you better understand the rate you're offered by a home mortgage company.
Improving Your Credit Score
Your debt specifics and bill payment histories are detailed in your credit report, and reporting agencies use that information to generate a credit score--ranging from 300 to 850--for each consumer. Mortgage borrowers who have a credit score of 620 or above qualify for better mortgage interest rates, instead of the subprime rates offered to less credit-worthy customers. Those with excellent credit scores (above 760) qualify for even lower rates and better terms.
Once you've obtained your credit score, myFICO (the consumer division of the Fair Isaac) offers several recommendations for raising it:
- Pay your bills on time, every time. Late payments can pull down your score and increase your interest rates.
- Keep debt under control. High debt-to-income ratios are a red flag for lenders.
- Don't rack up credit lines you don't need. New accounts will lower your average account age, which dings your score.
- Don't be afraid of credit cards and installment loans. If you manage them responsibly and don't get in over your head, they will help build your score.
Contact a Reliable Mortgage Company to Secure a Competitive Loan Rate
When you're ready to purchase a home or refinance your current residence, your trusted mortgage advisor provides comprehensive independent loan service, loan review and negotiation. Email info@trusted-mortgage-advice.com for more information or to request a personal service consultation.