Read this tip to make your life smarter, better, faster and wiser. LifeTips is the place to go when you need to know about Mortgage Rates and other Mortgages topics.
When you apply for a home loan, you need to know what the current mortgage rate really is. Home mortgage rates are always changing, and they can also be affected by things like your credit score and how much money you have for a down payment. A lot of companies advertise low home mortgage rates, but those are the absolute lowest rates, and are only for the most qualified people. They might be the current mortgage rate - but not for people with a credit score less than 750 who don't have 20% to put down.
If you really want to know what your current mortgage rate will be, you'll have to talk with a lender and get preapproved. A preapproval shows you which of the home mortgage rates offered will be the one you'll actually be paying. Then you'll know whether you want to proceed with the home loan at the current mortgage rate, or whether it would be better if you waited a while and worked on improving your credit. Raising your credit score and saving up for a 20% down payment can help you get better home mortgage rates, which will save you a lot of money over the life of the loan.
|Jennifer Mathes, Ph.D.|