How can I lower my mortgage payment?
What can I do to get a lower mortgage payment?
Do you want to stop renting and start owning your home, but worry about monthly payments? With the way mortgage rates and home prices are, we can definitely understand. Affordability is everything in today's market.
The good news is that our team can help you lower your mortgage payment. From different loan types, loan terms, and other programs, our loan officers will help you find a home loan that matches your budget and lifestyle.
Do you have initial questions about lowering your mortgage payment? Continue reading to get additional insights into how we can help, or contact our team of mortgage experts to get started on your journey to a new home!
How much home can I afford right now?
Before you get into the tips and advice, it's a good idea to understand where you currently sit. Start with our mortgage calculator, and input some general information about the type of loan you'd like. Have a rough idea of the amount you're likely to need, how much you have saved for a down payment, how long of a mortgage term you'll need, and a general idea of what the current rates are, and how much home you can afford..
Once you have an idea of where you're at currently, we can start to look for ways to help you save.*
Should I work with a mortgage expert?
A loan officer or a mortgage specialist can help you get a home loan with a monthly payment that is within your budget. Because a mortgage expert has more insights into the housing market and factors that determine your mortgage, they are able to use their knowledge to help you get into a home. They can also help you find programs or loan types to make payments more affordable.
If you have questions before getting started, we can definitely help you find the answers. Contact us to have to get the information you’re looking for.
Should I lock in my mortgage rate while I shop for a home?
Your mortgage rate is a big deal to your home loan because it directly impacts how much your monthly payment will be. It also impacts how much the mortgage will cost your over the life of the loan.
Locking in your rate while you shop for a home ensures that the rate you get on your pre-approval will be the rate that you pay. A home shopper can lock in their rate for up to 90 days. If rates go up within that time frame, you'll still get the initial rate that you locked in. If rates go down during the lock period, you can still negotiate to get a lower rate.
Does credit score impact mortgage payment?
You probably have heard that you should have a good credit score when attempting to purchase a home. While your credit score is a factor in whether or not you'll get approved, you don't need to have perfect credit for most mortgages.
Your credit score is important because it has a direct impact on your mortgage rate, and your rate helps to determine your monthly payment. It's a good idea to keep your credit in good standing if you want to make your home loan as affordable as possible. However, there are mortgage types that accept the minimum credit score required, and there are other steps you can take. Here a few ways you can increase your credit score:
- Decrease your credit card utilization
- Pay down more each month on your credit loan debt
- Pay off your credit cards
- Only use credit cards that you can pay off within a pay period
- Open or increase a line of credit
If you need more personal assistance, talking to a financial expert can be the best way to get you on the right path with your credit.**
Does my home loan type affect my payment?
There are many different types of home loans that you can choose from depending on what you can qualify for. The type of home loan can affect your payments because some are structured differently.
There are multiple home loan types available, and all have potential benefits and drawbacks. The term and type of loan can impact your mortgage rate and your monthly payment. Whether you’re look for a 30-year FHA loan or a 15-year adjustable rate mortgage, our experts can connect you with the loan type that makes the most sense for your situation.
Is it possible to reduce my mortgage rate?
It is very possible to reduce your mortgage rate! There are many ways that you will be able to do this when in the market for a home. As mentioned earlier, your credit score impacts your mortgage rate, so working to keep your credit in good shape could help you reduce your rate.
Another way you could potentially lower your mortgage payment is by reducing your debt-to-income ratio (DTI). When you have a lower DTI you are more likely to receive offers from lenders as it shows your ability to make payments on your loan. It also lowers the overall risk level to your financial profile, and likely increases your chances of getting approved.
If you want to have a low interest rate, another way is through a Guaranteed Rate’s Rate Reduce program. In a buydown, you'll negotiate a concession with a seller or builder to buy-down your mortgage rate for the first year or first few years of the loan. After the initial period, the mortgage rate will increase to a predetermined level. A mortgage rate buydown is a seller concession that will help a buyer afford the mortgage.
How can I start my journey to a new home?
Getting a low monthly payment on a home loan is attainable and there are many ways our experts can help you reach that goal. A common first step is a mortgage pre-approval. This allows you to get an idea of what you're likely to get approved for and shows sellers and agents that you're serious about getting a new home. A pre-approval doesn't require you to move forward on a mortgage, but it does allow our experts to better assist you in your journey.
* Savings, if any, vary based on the consumer’s credit profile, interest rate availability, and other factors. Contact Guaranteed Rate, Inc. for current rates. Restrictions apply.
** GUARANTEED RATE IS NOT A CREDIT REPAIR COMPANY, CREDIT REPORTING AGENCY, BROKER OR ADVISOR. You acknowledge that Guaranteed Rate is not a credit repair company or similarly regulated organization under applicable laws, and does not provide credit repair services. Where available, recommendations, tips and education materials are provided to you at no additional charge, and for educational purposes only. The services are intended to provide you with general information and assist you with identifying your options. The information is provided only to enable you to make your own choices about your personal finance, and is not intended to provide, legal, tax or financial advice. We do not provide any services to repair or improve your credit profile or score, nor do we provide any representation that the information we provide will actually repair or improve your profile. Consult the services of a competent professional when you need any type of assistance. You acknowledge that Guaranteed Rate is not a “consumer reporting agency” as that term is defined in the Fair Credit Reporting Act as amended.
Guaranteed Rate, Inc. is a private corporation organized under the laws of the State of Delaware. It has no affiliation with the US Department of Housing and Urban Development, the US Department of Veterans Affairs, the Nevada Department of Veterans Services, the US Department of Agriculture, or any other government agency. No compensation can be received for advising or assisting another person with a matter relating to veterans’ benefits except as authorized under Title 38 of the United States Code.