How Can I Get A Better Interest Rate On My Mortgage With Poor Credit?

Getting the best interest rate possible on your mortgage will require more than just a great credit score. In fact, even if you have poor credit there are still steps you can take to help lower the interest rate you are offered. Lenders look at a multitude of different factors including your score, current market trends, how much you can put down as a down payment, along with many more factors. Knowing how all of these aspects are intertwined is important for you to get a better interest rate on your mortgage with poor credit.

Save For A Large Down Payment

Although current trends and your score are important factors, the actual amount you put towards your new home upfront is very important in the eyes of a lender. The more you pay, the more they see you as someone who is taking the process seriously and less the risk is you will default. Having between 5 to 10 % is great and will just about ensure you will get a better interest rate on your mortgage, even if you have poor credit. That doesn’t mean you’ll get the lowest rates but it will help substantially.

Pay Off Other Old Debt Before You Apply

Even if you have blemishes on your report that aren’t going away anytime soon, making your recent history as positive as possible is important. Usually the last year to 18 months are what weigh the heaviest in the eyes of a lender. By making good even on old debt you are showing that you make good on your promises and aren’t a risk for defaulting. Using these simple ideas will help ensure that you get a better interest rate on your mortgage with poor credit.

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2. What Is A Typical Interest Rate On A Bad Credit Mortgage?
3. How Are Home Mortgage Rates Determined?
4. How Do I Find The Best Current Home Mortgage Interest Rates?
5. How Do I Apply For A Bad Credit Home Loan?