Article provided by: Supreme Lending Nashville
Buying a home can be cheaper than lending. With Supreme lending, getting a mortgage in Nashville TN is the ultimate step towards owning your dream home and securing your future. Our aim is to foster lasting relationships with all our clients so that we continue offering excellent services to anyone who walks through our doors.
How Can You Find the Best Mortgage Rates?
Mortgage rates constantly fluctuate and will vary according to a borrower’s situation. Here are tactics for finding great mortgage rates.
- Shop Around
Although it’s tempting to use the same lender your real estate works with, that won’t guarantee you’ll end up with the best interest rates. It’s advisable to compare loan estimates from several lenders to ensure you get competitive rates.
- Increase the Down Payment
Your down payment impacts your mortgage rate since mortgage rates are usually tiered. So, if your down payment is 20% or more, you’ll get a lower mortgage rate.
- Compare Fees
Look at all the lenders closing costs and fees so that you can fully assess the loan cost. Lenders give you a Loan Estimate form which makes comparing fees and total cost of the home loan easier.
- Improve Your Credit Score
One of the main factors that affect your mortgage rate is the credit score. Your lender will give you a lower interest rate if you have a higher credit score. Therefore, before applying for your home loan, review your credit score and work on improving it.
Are There Different Mortgage Types?
There are various mortgage types, and they include:
- Interest-Only Mortgage
With this mortgage, you’re given the option of paying only for the interest on the monthly payment rather than the full payment during the first 5 or 10 years. Although it slows down the repayment time, it’s useful if you’re in a pinch.
- Conventional Mortgage
This type of mortgage is also referred to as a fixed rate mortgage. It's considered safe because of its consistency. The amount you pay every month will not change over the lifetime of your loan.
It is also known as the piggyback mortgage. With the combo, you make a down payment of less than 20% then take two loans in combination so that you don’t pay the Private Mortgage Insurance.
- ARM (Adjustable Rate Mortgage)
There are several ARMs with their basic idea being a change of interest rates over time in the entire lifetime of the loan. The changing rates are a reflection of the cost of borrowing money and economic changes.
If you're on the balloon mortgage, you'll only pay interest for a specific period, for instance, five years and after this period, the full principal amount is required.
Get Your Mortgage Today
Supreme Lending is dedicated to providing clients with superior quality home loans at competitive mortgage rates. Whether you’re purchasing your home for the first time, buying the home of your dreams, consolidating debt, or refinancing your outstanding loan, our team of highly experienced professionals will help make your dream a reality. Call us today on 615.479.4428 for your mortgage in Nashville TN.
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