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Time To Grab The Best Interest Rates in Houston - Are You Ready?

Posted January 15, 2018 by Jane Wang to Finance 0 0
This post was written by a EasyFinance.com Community member. The views expressed below may not reflect the views of EasyFinance.com.

"Here, we take a look at some of the reasons why a person should compare mortgage programs to find the best interest rates in Houston."

If you have been trying to search for the best mortgage plans off late, then you must have noticed that the process is quite overwhelming. There are multiple lenders in the market and this can put you into a dilemma. Along with the conventional mortgage plans, there are many other loan programs such as the FHA, USDA and VA loans that let people own a property. There are dozens of things that you would need to consider while availing a loan with interest rates being one of themost crucial things on your mind.

Never Shy away from Comparing Interest Rates

You may feel we are stating the obvious and every person looking for home mortgage does his/her homework and finds the best interest rates in Houston. You are wrong and this is the reason lenders who charge even the highest rates also find a high number of customers! While there is no doubt related to the fact that most customers actually do some basic research, most of them aren’t well-versed in the right ways to compare the rates. It is advisable that you get in touch with lending service companies like Clear Lending in such cases as they keep track of the mortgage market and would guide you to avail the best interest rates in Houston. Such experts also educate you about your eligibility with respect to different loan programs.

Why Hunt for the Best InterestRates in Houston?

Home loans are long-term and you can’t apply the same process as you may have done to compare a personal loan or an auto loan.  Even a difference of 25 basis points (0.25%) among different loan programs can make a world of difference to what you have to pay to your lender over a long period. For instance, if you are borrowing $200,000 at the rate of 4%, you would pay a monthly installment of around $836; whereas, if you borrow at 4.25%, then your monthly installment would $868 for a period of 30 years. The difference of $32 a month may not seem to be a very significant difference but over a period of 30 years, you would actually have to pay $11,520 more as interest alone.

Watch Out for Your Credit Score

Your Credit Score is surely the single most important factor when it comes to determining the rates you are eligible for. If you have agood credit score of 620+ or so, you are eligible for various home mortgage programs. And as you know the more choice you have at hand, the chances of finding the best rates also significantly improves. On the contrary, having poor credit score means that you are often limited to one or two loan programs depending on your other eligibility criteria. In such a case, you would either have to take the loan at rates that are being offered by these lenders or not find aloan. Having good credit score also means that you will have to make a lower down payment which is something that young loan seekers with small savings always look for.

To improve your chances of finding the best interest rates in Houston, you should start by knowing your credit score which few Americans care to do till they need to avail a home mortgage. If you don’t have an excellent credit score, you should try and improve it. Small measures such as reducing the amount you owe on credit cards and other loans can help in improving your credit score. If you have missed paying on time due to silly reasons, you should set up areminder to prevent this from happening again as this also affects your credit score adversely.

To sum up, if you carefully approach home mortgage programs you are most likely to find the best interest rates in Houston and save significantly during repayment.

About Jane Wang: About Author: Joan Gallardo has worked for 18+ years as a Senior Loan Officer and has been helping his clients in finding the best interest rates in Houston. As an expert, he also guides people find home loans for bad credit in Houston.

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