One of the aims of future home buyers is to score a lesser price on their monthly mortgage payment. Lesser mortgage payment monthly means that your home could be more convenient to buy.
The "moneyball" theory used for baseball can also be used to target out the best amount that is friendly on your budget as indicated in the article of Realtor. The article discusses some ways wherein you can score a good monthly mortgage for your home.
1. Achieve a FICO score of 750 or higher
A credit score creates an optimum influence over to what mortgage rate a home buyer will receive. It is important that home buyers will secure their credit score in a level of 750 or above to qualify and get the best rates.
2. Debt-to-income Ratio must not be over 35%
This is just as important as a credit score. Securing your DTI to 35% or lower can secure you a spot for a good mortgage rate. The catch here is simple, do not make any new debts especially if you have existing ones and another helpful tip is to pay off that debt immediately.
3. Downpayment of 10%
A down payment is not an easy settlement for many but this is a helpful step for a homebuyer to achieve a lower mortgage payment in the future. A 20% downpayment is a very good amount to expect lower rates but 10% as advised is also just as good.
4. Opt for a Lesser year Mortgage Scheme
While paying for a 30-year term mortgage is friendlier on the budget, home buyers enrolled in this term are actually paying more than expected. Although, lesser terms like 5, 10, or 15 years may mean heavier mortgage payments monthly, this will save you some extra expense incurred if your mortgage is applied in longer schemes.
5. Study all Available Loan Types for your Home
Consider other loan types to help you achieve a lower mortgage rate. Many are not aware of the fact that there are various types of loan that can help you win a lower monthly mortgage. Some options provided were FHA, VA, USDA.
