Getting the Best Available Rate for Your Mortgage

How to Get the Best Deal on Your Mortgage

Purchasing a property is a big investment. When talking in terms of hundreds of thousands or even millions of dollars, a saving of 1 or 2% could mean a huge amount of money. Because of this, home-buyers are always trying to look for the best deals. Of course you want value for money for the property itself, but there are also many other factors that determine the final cost of your investment. One huge factor is the mortgage. If you can manage to get a mortgage with low rates and flexible terms, you will save yourself a lot of money and end up paying a lot less in the long run. But, what factors affect the terms of your mortgage? And how can you improve them? In this blog, your local Title Insurance Agency, Schutt Law Firm, P.A. would like to share a guide to getting the best deal on your mortgage.

Save Save Save

No bank or other mortgage lender is going to offer you a large sum of money if you don’t at least have a down-payment saved. Generally speaking, the larger the amount that you can get together, the better the terms of the mortgage. Buyers who are able to put down a down-payment of over 20% of the property’s value get the best rates. On top of this, if your deposit is less than 20% of the value of your home, you will more than likely have to pay mortgage insurance. This could add up to a couple of thousand dollars a year, so it might be worth delaying your purchase until you can get a larger deposit together to ensure the best deal. If you are able to save above and beyond what you need for the down-payment, even better! This demonstrates financial stability to the lenders, reducing the amount of ‘risk’ that you pose as a borrower and making it more likely that they will offer you favorable terms for your mortgage. In the cut-throat world of real estate, it’s crucial that you are ready for any eventuality. Without the proper safeguards, you could be vulnerable to other people contesting your ownership rights to your property. Title Insurance is the only way to fully protect yourself and your investment. Call Schutt Law Firm, P.A. today at 239 540 7007 to find more about how title insurance in Villas can protect your investment.

Improve Your Credit Score

Credit scores are calculated depending on a number of factors – your monthly income, your total amount of debt, how many times you have missed or delayed payments, etc. When you apply for a mortgage, the lenders look at your credit score and uses a calculator to decide what interest rates to offer you. Those with the best credit scores will be offered better rates as they represent a lower risk and a wiser investment to the lenders. To really optimize your credit score you need to plan ahead and take steps to maximize it well before the time when you’ll want to apply for your mortgage. One good way to improve your score is to consolidate all of your store card or credit card debt into one place. This is also advantageous as you will only have to make one monthly repayment, so it’s easier to avoid penalties for late or missed payments.

Shop Around

Have you ever heard of anyone getting the best deal on their weekly shop or their new car without shopping around? Well, the same goes for mortgages. Each different bank or other mortgage provider will have different criteria and different terms for their mortgages. Don’t just go with your usual bank, or the closest one to your home. Look online and visit a number of different agencies to find the best deal for you. When visiting multiple lenders, don't be shy about letting them know the previous rates you have been given. If they want your business then they may just offer you a better rate.

Secure Your Investment with Title Insurance in Villas

As purchasing a property is such a large investment, you’ll want to protect that investment in any way that you can. Imagine going through the whole long, frustrating process of saving a deposit, applying for a mortgage, putting in an offer and finally being able to purchase your dream home, only to then lose it due to a historical error in its title. Errors in the Title to a property can arise for a number of reasons – human error, fraud or issues with inheritance to name a few. Title insurance is the only way to protect your ownership rights from other people’s claims to your property. Call Schutt Law Firm, P.A. today at 239 540 7007 to find out more.