Michael Santos

MLB Residential Lending

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How to Lower Your Mortgage Interest Rate

May 3, 2016 by Michael Santos

How to Lower Your Mortgage Interest RateMortgage interest rates are at historical lows right now, but they’re expected to start rising soon. That’s why savvy buyers are taking steps to ensure they get the best possible interest rates on the market and then lock those rates in for the long term. But even if interest rates are already low, that doesn’t mean you can’t reduce them further.

So how can you save even more money on your monthly interest payments? Here’s what you need to know.

Buy Down Your Rate With Interest Points

Interest points are a form of pre-paid interest that can help you to greatly reduce your interest rate. When you buy down your rate using interest points, you’re essentially paying interest up-front in order to reduce your monthly payments. Each point that you purchase could reduce your monthly rate by up to 0.25%, which makes interest points a worthwhile investment when considering you’ll be paying interest for the entire life of the loan.

Refinance At A Lower Rate

Refinancing is a great way to benefit from historically low interest rates if you originally bought your home during a time when interest rates were high. With a mortgage refinance, you essentially pay off your first mortgage with a second mortgage, which you can negotiate as a completely new loan. This is a great option if you originally had poor credit when you first bought your home but have since improved your credit score.

Set Up Automatic Monthly Mortgage Payments

If you want to reduce your monthly interest rate, you’ll need to offer your lender something in return. One great way to get a lower interest rate is to set up automatic bank withdrawals that pay your mortgage for you every month. In exchange for this guaranteed monthly payment, your bank will be more flexible regarding your rate.

Opt For A Mortgage With A Shorter Term

If your income is about to see a large increase, choosing a shorter-term mortgage is a great way to significantly reduce the amount of interest you’ll pay. Shorter mortgages like a 15-year fixed mortgage typically have lower interest rates than longer mortgages, and you can save thousands of dollars over the life of the loan by choosing a shorter mortgage term.

Mortgage interest rates are the scourge of many a home buyer, but with smart buyer strategies and the guidance of a qualified mortgage advisor, you can reduce your interest rate and save thousands of dollars on your home purchase. Want to learn more about how you can reduce your interest rate? Contact your local mortgage professional for more information.

Filed Under: Home Mortgage Tips Tagged With: Home Mortgage Tips, Mortgage Interest Rate

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Branch Manager Executive / Mortgage Loan Originator

Top Loan Originator Since 2001

Call (908) 296-6608

NMLS #199875
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MLB Residential Lending, LLC.
NMLS# 1101220
1095 Morris Ave.
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Union, NJ 07083

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This is not a commitment to make a loan. Loans are subject to borrower and property qualifications. Contact loan officer listed for an accurate, personalized quote. Interest rates and program guidelines are subject to change without notice.
MLB Residential Lending is an Equal Housing Lender.
NMLS# 1101220.
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Michael Santos is not licensed in NY and this site is not intended for NY loans.
Michael Santos NMLS #199875 • MLB Residential Lending, LLC. NMLS# 1101220. Michael originates NJ loans only. MLB Residential Lending, LLC. is located at 51 Commerce Street, Springfield, NJ 07081, 732.243.0140. MLB Residential Lending, LLC. NMLS#: 1101220 is a residential lender, licensed by the NJ Department of Banking and Insurance; licensed by the PA Department of Banking and Securities; licensed by the CT Department of Banking; licensed by the DE Dept. of the Banking Commissioner; and is licensed under the FL Mortgage Lender Service License # MLD1128. All rates are subject to change without notice. MLB in no way, claims to represent or to conduct business on behalf of HUD, the FHA or the Federal Government. This site is not authorized by the New York State Department of Financial Services. THIS SITE IS INTENDED ONLY FOR NJ CONSUMERS.

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