How To Get A Better Mortgage Rate
How To Get a Better Mortgage Rate By Improving Your FICO Score
The American dream has always included home ownership, a place where a man can raise his family free from government oversight. That dream is still attainable even in today’s economy, but it must be tempered with common sense to prevent your dream from becoming your worst fiscal nightmare.
The biggest expense of home ownership is, of course, the monthly mortgage payment that you make. This payment includes 2 basic amounts, one that is applied to the principal, which represents the amount of the loan that you secured from your lender. The second is the cost of the loan to you, the interest rate. This is the amount that the lender has decided to charge you in order to carry your loan. Your lender determines what interest rate it will charge based mainly on your FICO score, a tool developed by the Fair Isaac Corporation which is used by most financial institutions to discover your credit worthiness, or your likelihood to pay debts in a timely manner. A good FICO score of 700 or more will get you one of the best rates, while a score below 600 could add 1 to 1