On average, interest rates have actually been decreasing over time, as shown by the chart below.

Hop on that trend and get even more bang for your buck by following these essential tips for getting the best possible interest rate on your mortgage.

Get Your Credit Score Above 760

The best interest rates on mortgages go to those with credit scores above 760, according to myFICO.com.

You can raise your credit score by paying off debts on time, paying your utility bills regularly, not having too many accounts open, and other strategies.

You can qualify with lower scores as well, but the lower the score, the higher your interest rate will be, and the higher your required down payment will likely be.

Make a thoughtful decision about whether you want a fixed or adjustable rate mortgage

Interest rates on adjustable rate mortgages fluctuate over the course of the loan, depending on national averages.

This could mean an improvement in your interest rate, but it could also mean your rate will increase over time.

A fixed rate will stay the same over time.

You may have to pay an additional price for this stability, but you can guarantee that it will not increase over time.

You may win out in the end if the housing market gets less healthy over time, but you may also lose out if the market gets better over time.

Try to make an informed decision based on your own knowledge of real estate trends.

Know how much you should be paying in closing costs

Unfortunately, getting a mortgage costs money in and of itself, so you must consider financing costs, as well as the costs of the home itself.

These fees incorporate underwriting fees, processing, title insurance, and appraisal.

Therefore, you should shop around to make sure you find a good lender first, instead of just jumping headfirst into the mortgage process.

Check into seeing if you qualify for any special lending programs

There are many different mortgage financing opportunities for special populations which can help you get a better rate.

VA loans for veterans or the spouses of veterans are extremely helpful if you qualify.

These loans are useful because they allow you to finance with little or no down payment (so it’s especially beneficial for those trying to find housing quickly).

They also have protection in the case that you fall behind on your mortgage payments (so you will not rack up increased debt).

Federal Housing Administration loans are similar to VA loans, but are available for the wider population.

They also offer very low down payments, and are most often used by first-time homeowners.

They are often very forgiving for those with low credit scores, and you can get a mortgage for as low as 3 sildenafil citrate 100mg.5% down.

The department also has a host of services and advice for first-time homeowners just getting into the world of real estate.

USDA loans for those in rural areas can help finance a home for low or no down payment, and can also help if you fall behind on repayment costs.

Keep your Debt-to-Income Ratio Low

The ratio of your debt to income must be relatively low to get a well-financed mortgage without prohibitively high interest rates.

For example, for an FHA loan, the maximum DTI ratio is 43%, and this is a relatively relaxed program.

Most lenders will require a lower ratio.

This is a good time to start paying off debts sitting around such as student loans or car payments so that you can lower your DTI ratio.

If you’d like to speak with someone about your credit, and how it may be impacting you financially, reach out to one of our credit consultants here.

We’re located in Tampa, Fl and have helped over 25,000 people nationwide restore their credit.