Friday, May 6, 2011

Mortgage Interest Rates Huntsville Are Low

By Shawna Fletcher


Mortgage interest rates Huntsville are reaching record lows it seems each quarter but loan rates are soon to go up as the economy starts to improve. Everyone wants to save money and there are ways to save money on a home loan and to find the optimal loan rate. One of the easiest ways to obtain a low rate is to have a good credit rating.

Lenders base the loan rate on an applicant's credit history and applicants with high credit scores will be offered a lower loan rate. People who pay their bills on time and maintain low balances on their charge cards will have a better credit score than people who are late on their payments. Credit experts advise that a charge card holder stay under forty percent of his balance so for instance never carry more than a four thousand dollar balance on a credit limit of ten thousand dollars.

People who have less than stellar credit should consider postponing their loan application process until they can clean up their credit history. Remember, to check credit reports often for mistake. Lenders assume that all credit reports are accurate so it is up to the applicant to make sure that his credit history is free of errors.

Close unused credit cards because lenders frown on applicants who have several charge card accounts. Even if there is a zero balance on an account the lender considers that zero balance as potential debt that can affect an applicant's ability to pay his monthly house payment. There are some steps that an applicant can take to clean up his credit report before applying for financing.

People who have less than excellent credit history should consider hiring a credit repair service. Most credit repair services charge a fee and most offer no guarantees so make sure to use this service wisely. But for some loan applicants a credit repair service might help the applicant find a lower home loan rate so a repair service might be worth considering.

Once the credit report has been checked and steps have been taken to improve one's credit score, it is time to shop around for the best rate. Shop around and compare rates from many lenders and consider working with a broker who has access to several lending institutions. Many people discover that a broker can save them time and money because a broker can submit one loan application to several lenders at the same time and many lenders prefer working through brokers they have transacted business with before.

Mortgage interest rates Huntsville have not been this low in decades. But what goes down must go up so now is the time to apply for financing. Home prices are also at an all time low but prices will soon start to rise.

mortgage interest rates Huntsville




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