Mortgage rates today are near all-time lows. That only tells part of the story, though. In order to qualify for the best mortgage rates, you may have to jump over some hurdles.
Mortgage rates are historically low for 30-year fixed-rate mortgages, the most popular type of loan. Due to these low mortgage rates, homebuyers with loans above 6 percent to 7 percent interest can save money over the life of their loans by refinancing.
However, finding the loan that is right for you is just the beginning.
Getting the lowest mortgage rates today
Before zeroing in on the best mortgage rates, determine if you can save money by refinancing. Using a mortgage calculator can help you figure out what you can afford and how much you can save.
The next step is to ensure your credit is in excellent condition. The recent recession has redefined the terms for “good” and “excellent” credit. Those seeking the best mortgage rates will need to have excellent credit, which is usually defined as a credit score of at least 760 or better.
In addition to your credit report, mortgage lenders will look at the following areas of your financial life to determine if you qualify for the best mortgage rates today:
- Your job and the length of time you’ve been working.
- Your debt-to-income ratio.
Secure your future by making sure your credit history is clean and all of your information is in order before applying for a mortgage.