How to Get a Low Mortgage Rate

Have you ever seen a great mortgage interest rate advertised only to call and find out that you don’t meet the standards of an “excellent” borrower? Here are some tips to get you into the lowest mortgage rates in history!


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    Pay your bills in a timely fashion. Approximately 35% of your credit score is directly related to your ability to make payments on time. This is very heavily weighed, especially when applying for mortgage financing. The bank wants to know you will pay your mortgage on time every month. They are lending you a lot of money in hopes that you pay it back, with interest. If you don’t typically pay your current debts on time, chances are you may not qualify for a mortgage at all, let alone one with a competitive interest rate. The more recent the delinquent account, the greater the impact it will have on your score, and ultimately your loan approval decision.
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    Pay down your credit card debt. Approximately 30% of your credit score is derived from your proportion of available credit in relation to the total amount of available credit. Say you owe $3,000 on a card with a $5,000 credit limit, this would be viewed as negative on your credit report and reduce your overall credit standing/score. If you were to pay this card to below half (50%) of your available credit limit, you could have an immediate positive impact on your credit score.
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    Don’t apply for new credit or loans. Every unnecessary inquiry (when you have your credit checked by a bank, employer, insurance company, etc.) has the possibility of lowering your credit score as much as 10 points or more. Be careful who you give your social security number to and try to avoid applying for a mortgage on one of those sites that lenders compete on. These are just lead portals and they sell your information to random mortgage companies that could possibly pull your credit report and lower your score dramatically.
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    Skip the lines at the bank. Often times, consumers go directly to the bank that they have their checking and savings account with. These are what is referred to as retail operations and the consumer usually pays a higher interest rate to pay for the higher overhead that banks like this incur. Don’t rule out your local broker or mortgage lender, they may have access to rates that aren’t even on the open market. Pick someone you trust and allow them to do their job, it’s that simple. Make your decision in the beginning of the process and do all of your homework at the start to avoid last minute surprises.


  • Rates are the lowest in history right now and they won’t be there for long. Take advantage and get locked in to a low mortgage rate for the rest of your life, now is the time! If you follow these simple steps, you can rest assured that the banks will be knocking down your door to finance your home.

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Categories: Mortgages and Loans