It’s all about getting the lowest rate with the best terms when it comes to financing or refinancing your home or next home improvement project. This week we’ve focused on interest rates, their components and how indexing plays a part in monitoring the rate environment.

But when it comes right down to it, all we really want to know is how can I get the best rate for my loan (which of course, means the lowest payment amount)? When lenders determine the rate for a loan, they typically take several factors into consideration:

• Know your credit score. Many people wait until they are ready to purchase a home to check their score. It’s at that time they find many “surprises” which may stand in their way of obtaining the best rate. If you check your score often you can avoid some of the common pitfalls homebuyers run into and you’ll have time to remedy a sour rating.
• Choose the right kind of mortgage. Here’s where we can help. The government has specialized loans for first time homebuyers and veterans, for instance. Compare an adjustable rate mortgage to a fixed rate to determine the best rate situation for you. Don’t just assume that a 30 year fixed rate is going to be the best product for your needs.
• Determine if you should pay down your interest rate. If you have extra cash on hand and plan to stay in your home for a while, you can save a good amount of money if you pay discount points on your mortgage to lower your rate.

Keep in mind that every loan scenario is different. To determine your best interest rate talk to one of our loan professionals at AmeriFirst to review your situation. Contact us toll free at 800-466-LOAN or contact us online!