Tips for Obtaining Low-Interest Mortgage Loans: How to Meet Credit Requirements for Quick Housing Loans from Banks

A Seattle Times publication, captioned: “30-year Mortgage Rates Tie Record Low – 4.78%” indicated that a survey by Fredie Mac, a Market research firm, had found that interest rates on mortgage loans hit an all-time low in the first week. The paper reported that the results of the 30-year survey by Fredie and Mac, had spurred “refinancing activity as the troubled housing market moves closer to possibly hitting the bottom.”

Good Time for Mortgage Refinancing

The new finding on housing credit rates shows that the best times for refinancing and home equity loans are here. The Seattle Times publication, reported Frank Nothaft, Freddie Mac’s chief economist as confirming that due to the low rates, “those who refinance a $200,000 loan would save almost $212 in monthly mortgage payments and more than $2,500 a year.”

Increased Credit Requirements

Despite being a good time for mortgage refinancing and acquisition of fresh loans, banks and other lenders have at the same time, increased their credit requiremets making it difficult for more people to qualify for real estate credits. As observed in a CNNMoney.com article, captioned: How to Nab a Low-Rate Home Loan,” written by Caria Fried, “Lenders grappling with deadbeat homeowners and shifting regulations, have pared back on mortgage products and upped credit requirements.”

The upping of credit requirements among banks and creditors is attributable to recent experiences of how bad mortgage credits nearly collapsed some top financial institutions.

How to Meet Mortgage Credit Requirements by Banks

Under the current circumstance, the best way for acquiring good-rate mortgage loans is by improving upon one’s credit score. In a publication titled: “How to qualify for Lower Mortgage Rates” published by Canadian real estage firm, Compare Qoutes on its website, the company stressed that, “credit score plays a significant role in the mortgage rate that you will be offered. A high credit score results in a low mortgage rate offer while a low credit score results in a high mortgage rate.” For those wanting to have low interest secured loans or insecured loans, the best way to go about it is to improve upon one’s credit worthiness.

How to Increase Credit Score

According to industry experts, one of the good ways of improving upon one’s credit worthiness is to have a credit history that shows that one credit-worthy and can be trusted. To have such a history, Compare Quotes suggested in the publication cited above that one needs to minimize the use of credit; avoid creating more debts and then have a plan to pay off, or at least decrease the amounts owed to creditors.

Negotiating for Reduced Interest Rates

Initial rates quoted by lenders can be reduced if a lendee negotiates properly. Such negotiations, however, works best for people whose exceptional credit scores gives them the opportunity to access mortagage loans from almsot every lender. So again, getting a low interest secured loan or insecured loan will largely depend on a borrower’s credit score.