If you are to apply for a home loan, one of the most important things that you should consider is the interest rate. If possible, look for a loan with a low interest rate. This can be hard to do and thus here are some tips to consider. These will help you so that you can reduce your rate.
Shorten your Home Loan Term
If you are to apply for a home loan, you have to choose one that has a shorter payment term. This can greatly reduce the interest that you will be paying soon. Of course, this will also result to faster payment.
For example, if you are to choose from a 30-year and a 25-year loan, choose the 25-year one. You can save up to 20% on interest rates.
Increase your Regular Repayments
The more money you save, the higher is your chance of paying off your loan. Every cent counts. If you can increase your regular repayments for your home loan, do it. Doing this, you can pay off your loan in a shorter amount of time. This will then lead to lower interest rates.
There are several ways on how you can make this possible. One, you can save money on things you don’t really need. Make your loan your priority and you should be fine.
Pay a Lump Sum Amount
In addition to increasing your regular repayments, you can also lower your home loan interest rates by paying off a lump sum amount off your loan. This will shorter your payment term, thus, lowering your interest rates.
For example, if you will pay a $10,000 off your loan, then you can decrease your term for about 5 years. Of course, the interest for these 5 years will no longer be counted, thus, you have saved on it.
Obtaining a home loan with low interest rates is the dream of many people. Unfortunately, most home loans already carry high interest rates. Despite this fact, you don’t still need to worry because you alone can lower your rates. By following the tips mentioned above, you can surely save money on your loan and you can even pay off your loan in a shorter period of time.
If you need help in acquiring a home loan, particularly a San Diego home loan, then you should contact us at Community Mortgage. We have already helped a lot of people and we will be happy to help you as well. Call us now at (619) 692-3630 for a free and personalized consultation.
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We work with and for our clients to provide them the best mortgage options to help them achieve and maintain home ownership.
814 Morena Blvd #310
San Diego, CA 92110
Phone: (619) 692-3630
NMLS ID # 908271
Community Mortgage, Inc. is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines