Posted 1.11.13 @ 9:30
No one wants to pay more than they have to, and there are so many ways you can cut down on your interest when buying luxury homes for sale it’s not even funny. You’re going to need good credit first and foremost – but not just a good credit score! A large down payment always goes a long way towards bringing those interest points down, and the right lender will make the difference. Whatever you do, you’ll want to make sure that you’re getting your rate as close to or under 4% as possible.
What Kind of Loan Are You Looking For?
The kind of loan you’re looking for will seriously impact the amount of interest you’ll have to pay! If you’re looking for a short term loan (under 5 years) to buy Oakville real estate, you’ll want to look at variable rate mortgage. If you need something longer term that can be more flexible with repayment terms, you’ll want to look at fixed rate mortgages. There are combination mortgages that are a mix of both, but it’s something you’ll want to talk to your financial planner about first.
How Many Liabilities do You Have?
Liabilities like bad debts, other mortgages and things that are a drain on your finances will seriously affect what kind of mortgage rates you’re offered. You’ll want to get a handle on these types of issues before you apply for a mortgage.
How Stable is Your Job History?
A stable job history is vital to getting the most out of your mortgage and the lowest rate. No one wants to pay more than they have to, and if you can show the mortgage lender that you’re a stable person that will have a job for many years to come you’ll easily be able to get a mortgage under 4%. Don’t be afraid to work with a broker to see if they can find you a better deal – if they can’t find you one you don’t have to work with them.
How Good is Your Credit?
Credit isn’t just about your FICO score or your payment history – it’s a combination of both these things to give lenders a better picture about who you are as a borrower. It can be easy to get behind on things or think you’re in a better place, so it never hurts to order a copy of your credit report. Dispute any incorrect information, get a report from one of the major reporting agencies (TransUnion Canada and Experian) so you can see what your FICO score is and get a handle on things before you borrow.
Making a Big Down Payment
A large down payment goes a long way towards making sure your mortgage stays under 4%. You would be surprised if you knew the acceptance rate of people that had just the 20% minimum down, even on luxury real estate. The more you can put down on homes for sale the better and you’ll see a big difference in the deal you’re offered.