Strategies for Securing a Good Mortgage Rate

Mortgage Rate pic

Mortgage Rate
Image: bankrate.com

Priority Mortgage Group, which does business as Priority Financial Group, serves borrowers under the leadership of President David Gomez. Under David Gomez’s supervision, the company seeks to connect customers with appropriate loan types and rates.

There are multiple strategies through which a borrower can secure a good mortgage rate, but most relate to either the borrower’s credit or adjustment of the loan terms. Borrowers with strong credit tend to secure better mortgage rates, particularly if the score in question is 760 or higher. Those with lower scores can improve their rates by paying off debts and delinquent accounts.

Borrowers can also improve their chances for good rates by reducing debt-to-income ratios, which can be achieved by the total lowering recurrent expenses and maintaining a steady or increasing income for a period of two years. Savings can also play a role, as a higher down payment tends to correlate with a lower interest rate.

In the shorter term, a borrower can work toward a stronger interest rate by seeking out federal programs, such as Federal Housing Administration (FHA) or Veterans’ Affairs (VA) loans, which can offer lower interest rates thanks to federal protections. There are also up-front fees that borrowers may be able to pay to reduce interest rates, though these only tend to be financially beneficial if the borrower plans to hold the same mortgage for a relatively longer period of time.

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