Reduce Mortgage Interest Rate Without Refinancing

To get the best interest rate on a mortgage, you may need to be willing to shop around. It may also take a detailed understanding of how a lender determines what it charges for the right to borrow its money. Generally, your credit score, debt-to-income ratio and whether you are getting a fixed vs. variable rate loan will play a role in how much of a risk a lender consider you to be.

What’s Your Credit Score?

In most cases, a lender will reserve the best rates for borrowers with credit scores of 700 or higher. However, it never hurts to ask if there is any way a lender will go below its advertised rate. If you have a credit score over 700 or some other reason why you deserve a better rate, a lender will likely consider it. Small banks or credit unions may be willing to make you a deal in an effort to retain you as a customer for the short and long-term.

Shop Around for the Best Rates

It is critical that you consult with multiple lenders before you decide to fill out loan paperwork. This process can be expedited by going to a loan comparison site that will list offers from multiple lenders at once. However, it is important to note that these are just estimates. Therefore, it will still be necessary to talk with a loan officer before locking in your rate. (Read these steps to getting a home loan here.)

Get Advice From Friends or Family Members

Talking with family members or friends may point you toward the best loan officer in Las Vegas who fits your needs and budget. Remember, you are free to choose any company that you want to work with regardless of what your friends, real estate agent or seller tells you.