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3 Best-Kept Secrets to Land the Lowest Mortgage Rates in Houston

When you are looking around for a mortgage, the best rate should be your top priority. What is the best mortgage rate? The best rate lets you save the most money on closing costs, loan terms, and other fees. Interest rate is a huge factor, but it is not the sole aspect you should be looking at for a home loan. Of course, rates change frequently. For instance, if you see 3.25% as of today’s rate, it might become 3.40% a month later. Many lenders will lure you into a low rate, but you might be paying for other charges.

While seeking the lowest mortgage rates in Houston, you need to prepare your profile too. The mortgage rates heavily depend on the market conditions. With a low rate, you could save a lot. However, you might have to put in the extra effort. Several uninformed buyers make the mistake of not going over the important tips in the thrill of purchasing their first home.

Even if you could land 3.50% instead of 3.75%, you can save thousands of dollars. Here are the top tips you cannot avoid while finding a low home loan rate.

Be Sure to Prove Yourself as a Steady Employee

If you are willing to negotiate the rate, you need to work with the same employer for two years or more. Remember, lenders prefer employees working for businesses. Lenders often do not favor self-employed people and freelancers. A loan officer might ask you to get a co-signer when you are not associated with an organization. If you run your own business and your spouse is an employee at a company, you can get a favorable rate. Of course, you might have to take the mortgage in your spouse’s name.

Think of Paying Points

If there is little cash left, you can pay a discount rate. This can qualify for a much lower rate. If you have ever heard of “buying down the rate,” this is it.

If you have plans to do so, remember your long-term plans. Skip this part if you have no plans to stay in the home for the upcoming years. You need to stay in the home until reaching the breakeven point. The breakeven point is where your savings of the interest rate exceed the cost of points.

Compare Your Options

If you do not shop around, you might be missing out on a deal you truly deserve. This means you cannot grab any mortgage you find. Interest rates depend on the loan type. An adjustable-rate loan comes with a lower rate than a fixed-rate program. Also, the shorter-term loans have a lower rate than the 30-year programs. If you have a low credit score and served the country, you can apply for FHA or VA loans. Your interest rate stays with you for years. So, think of ways to save thousands on the loan.

In the end, keep working on your credit score and find a rate you are happy with. An effective strategy can help you find the lowest mortgage rate in Houston. So, good luck!