Buying a home is an important decision and one that most people look forward to with a mixture of excitement and a bit of dread. It is a huge financial investment and finding the best possible rate for New York City mortgages is as important as locating that perfect place to live.
There are a few practical ideas that are provided to people, especially first time home buyers about how to get the best rates for New York City mortgages. These include checking your credit score and getting errors removed from your reports. The advice also tends to indicate that you need to pay off as much debt as you can and boost your income as much as possible for at least 6 months prior to applying for the loan.
However, there are some other considerations that you can keep in mind as well. While the above mentioned tips are certainly important and do help your ability to get New York City mortgages, the following will also help out as well.
Save a Big Down Payment
The bigger the down payment is that you can put on the home or residence the lower your interest rate will be. This means that if you put down more you are going to own the lender less, and there is immediately more equity in the home. This means less risk for the lender and better interest rates for you. Remember even a small amount of interest savings over a 30 year period is going to add up to tens of thousands of dollars on a significant loan.
Type of Residence
In most situations if you are buying a home, even with a low down payment, you will get a better interest rate than if you are buying a condo. Often condos are seen as a more risky investment for lenders as there are additional fees that you will have to pay as a borrower in addition to the mortgage. With a large down payment this may a minimal issue to consider, so it is really a case by case comparison.
Finally, when shopping for New York City mortgages the length of time you want to lock in the rate will also impact the interest rate that you are charged. Shorter close dates tend to favor the lender and often result in reduced interest rates for you.
