As you’ve likely heard in news reports, the Federal Reserve plans on raising interest rates in March 2022. If you are looking to buy or refinance a home, you might hope to get a lower interest rate on a mortgage soon before next interest rate hike kicks in. Here are some ways to get your interest rate lower.

Learn where your credit stands before applying / Improve Your Credit Score and History

Your credit score gives lenders a snapshot of your experience managing credit, and they use this information to predict how you might handle credit in the future. Along these lines, mortgage lenders typically view a high credit score as an indicator you’ll be a strong borrower and repay your loan as agreed. When lenders are confident, you’ll be responsible with credit, they’re more likely to reward you with lower interest rates on a mortgage.

As a general rule, the higher your credit score, the lower your interest rate may be on a mortgage. If your credit is less-than-ideal, give us a call at 844-349-8727 to help you with a consultation and look over where the areas of opportunities are. We offer 4 different services under one roof to assist you with your goals. For the mean time you want to continue to Make all your payments on time and pay down your credit balances.

Make a Bigger Down Payment

The more money you put toward your down payment, the better your chances are of scoring a lower interest rate on your mortgage. When you put down a significant percentage of the purchase price, you lower the loan-to-value (LTV) ratio for the home. That’s a number lenders use to assess their risk on a loan. The lower your loan amount is compared with your home’s value, the more likely the lender will see you as a safe borrower—and the more likely you’ll be to secure a lower interest rate. On the other hand, the smaller your down payment, the riskier a lender will view your loan, which could result in a higher interest rate. It’s better to put 20 percent down if you want the lowest possible interest rate and monthly payment. If you can do more that would be ideal, however if you do less than 20 percent make sure you have a very strong credit score from 700-850 for lower interest rate. Credit Consultants can help you with unnecessary expenses and how to reallocate your money to optimize savings for your home down payment.

Shorten Your Loan Term

You can usually qualify for a lower interest rate if you shorten your loan term from, say, a 30-year loan to a 10-year or 15-year mortgage. Short-term loans typically have lower mortgage rates because they are less risky for the lender. If you’ve found your long-term home, and you can comfortably manage the payments, consider getting a shorter-term loan to pay off your home sooner. If you are already on a home loan we can work together to get a better credit score and with clean credit history to put you in the best position to refinance and shorten your loan term.

Lock in a Rate Before Rates Increase

The closing process can take several weeks, and interest rates can fluctuate during that time. Once you sign the purchase agreement and are approved for a home loan, talk to your lender about locking in your mortgage rate. By doing so, your interest rate will stay the same, regardless of what happens in the market. You may have to pay a fee to lock in a rate, but not always. Remember this is the final step after you have already gone through your credit review and repair process and have been able to save for a bigger down payment. Do not put yourself in a position of applying and barely qualifying with minimal credit score and high interest rates. At the end of the day you will end up with that high monthly payment not your realtor.



A Goal without a Plan is just a Wish. Give us a call TODAY at 844-FIX-URCR or click on the following link to schedule your FREE consultation and create your personalize plan to achieve your credit and debt GOALS!