Best Mortgage Rates: 30-Year Fixed Near 1-Year Low
Three Ways to get a Lower Mortgage Rate
Here’s a summary of the article’s advice on securing a better mortgage rate:
1. Improve Your Credit Score:
Why it matters: A higher FICO score leads to a lower interest rate.
Score Ranges:
Good: Above 670
Very Good: Over 740
Exceptional: Above 800
Impact: A difference in credit score (780-850 vs. 700-739) on a $350,000 loan can result in an extra $13,000 paid in interest.
How to improve:
Pay bills on time, every month.
Keep revolving debt below 30% of available credit. Request a higher credit limit (without increasing spending). Fix errors on your credit report.
Build a longer credit history.
2. Boost Your Down Payment:
Why it matters: A larger down payment (ideally 20%) demonstrates lower risk to lenders and can result in a lower rate.
Benefit: Putting more money down shows lenders you have “more skin in the game.”
The article also includes links to related CNBC articles about credit card usage and coffee prices.