Lower Your Mortgage Rate by 1% or More With These Housing Hacks

Mortgage rates won't drop signifcantly in the next few months, but you don't have to put off your homebuying plans. The mortgage rates you see advertised online are simply averages based on what borrowers are being offered at a given time. Depending on your financial profile, you could qualify for a significantly lower rate. By taking steps to improve your credit score and negotiating with multiple lenders, you can secure a better deal. In other words, if budgeting for a near-7% rate on your home loan is challenging right now, there are ways to reduce it to 6% without waiting years to enter the housing market. A lower interest rate saves you money A 1 percentage point difference in your mortgage rate can translate to about 10% savings on your monthly mortgage payment, and tens of thousands of dollars in savings over the course of your loan. For instance, let's say you buy a home for $400,000 and make a 20% down payment on a 30-year fixed-rate mortgage. The difference between a 7% ... Read full article.