Buying a home is an exciting time and is one of the largest investments you will make. As mortgage brokers in Rochester Hills, Michigan, Gem Home Loans will manage the entire loan application process for you, including helping you shop for the lowest interest rates that can save you thousands of dollars over the life of your loan.
Gem Home Loans is a client-focused lender that prefers working one-on-one with clients in building custom financial solutions. We have a dedicated team of experienced professionals who understand Michigan and the local housing market.
Our goal is to fully understand your family’s needs and find you the best available home loan for your new home, second home, or investment property. We are dedicated to providing you with the highest level of personalized attention and customer service throughout the home financing process.
These factors will determine the interest rate you get on a mortgage:
The credit score of each borrower. Try to improve your credit score before applying for a mortgage. This is the single best way to save money on every type of financing, with the best rates typically going to borrowers with FICO scores of 760 or better. Pay down your revolving debts if possible and, if you have made late payments, request goodwill adjustments to have them removed from your credit report.
The price of the home and amount of the mortgage. If you want the lowest possible mortgage interest rate, opt for a conforming loan (a loan of $510,400 or less). If you live in a particularly expensive area, you may need to opt for a super conforming loan (a loan that can go up to $765,600 on a single-family home) or a jumbo mortgage (a loan that exceeds these amounts.) In general, the higher the loan amount, the higher the rate will be.
Your down payment amount. Another great way to get a better rate is to make a larger down payment. Typically, you want to put down at least 20% of the cost of your home as a down payment. However, the larger your down payment, the less of a risk you will be to the lender, and this will often lead to lower interest rates.
The loan term. A shorter loan term may cut your interest rate significantly. For example, even though the monthly payment will be larger, you may pay much less interest on a 15-year mortgage versus a 30-year mortgage.
Type of mortgage. There are many different types of home loans. Be sure to investigate VA, FHA, and USDA loans. Each of them comes with unique terms and requirements, and some of them allow you to lock in a below-market interest rate if you meet the qualifications.
As one of the best mortgage companies in Rochester Hills, Michigan, Gem Home Loans can guide you through the home loan options so you can be confident that you’re getting the best mortgage rates. Get in touch with us at (248)-318-2394 or contact us online.