Purpose
Refinance Purchase Home Equity

Loan Type
Fixed ARM Interest Only FHA

Amount

State
Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District Of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming

Display Mortgage Rates &
Refinance Rates in your State

How Do I Get The Best Fixed Mortgage Rate?

By Jim Micheals

When a mortgage company advertises mortgage rates, do not automatically assume you will be entitled to the lowest rate. The lowest rate a mortgage company offers is based on several factors and is reserved for the best customers. It is much more difficult to obtain the best fixed mortgage rate than you think. You need to become informed concerning a few of the factors that will affect the interest rate a mortgage company will offer.

Credit History and Credit Score

Your credit history and credit score have a major impact on qualifying for the best fixed mortgage rate a mortgage company offers individual customers. Keep in mind the best fixed mortgage rate is reserved for the best customers, so the higher your credit score, the lower your interest rate will be. Although there is nothing you can do about your credit history after the fact, if you are prepared before you attempt to buy a home, it will come as no surprise to you when you are unable to obtain the lowest fixed mortgage rates that are on offer.

Financial Stability

The length of time you have been on your current job, your salary and your ability to save money are all part of your financial stability. Mortgage companies use these factors in order to assess your financial stability and thus decide the risk you present to them. The higher the risk factor, the higher the interest rate will be.

Ratio of Appraised Value to Loan Amount

The ratio of appraised value of the home you’re purchasing compared to the mortgage you are seeking also have an effect on how close to the best fixed mortgage rate you will come. For instance, someone who has a mortgage of 75 percent of the appraised value of their home will pay a lower interest rate than someone who finances 90 percent of their home’s appraised value.

Related posts:

1. What Factors Are Used To Determine My Mortgage Rate?
2. What State Has The Lowest Mortgage Rates?
3. How Do I Get a Mortgage Rate Quote I Can Trust?
4. What Is The Best Length For A Fixed Mortgage Rate?
5. Can A Fixed Rate Mortgage Be Beneficial When Buying A Home?