In the golden years of 2020 and 2021, historically low mortgage rates were the talk of the town. Today, they’ve scaled the charts, hovering around a 6% to 7% APR. But before you retire from your home-buying dreams, consider this: even in a sea of high rates, you can still find a shore of savings. And like any good Californian, if you ride the waves right, you can still make a splash in the real estate market in 2023!
1. Credit’s King: The Golden Key to Best Rates
One cannot emphasize enough the power of a good credit score. As Colin Zizzi, the brain behind Zizzi Investments, mentions, “Your credit score is still going to be the biggest factor in determining if you will get the best rate.”
Before diving into the mortgage pool:
– Dive deep into your credit score and report. Fish out any discrepancies and clear them up.
– Keep your debt in check and your bill payments timely.
– New credit application? A big NO! Hard credit checks can dip your score, denying you the crown of the best rates.
2. The Details in the Devil: Loan Structuring
A mortgage isn’t just about borrowing money; it’s about how you repay it. Tweak the loan details to your favor:
– Short and Sweet: 15-year mortgages often have rates lower than their 30-year counterparts. You might pay more monthly, but think of the long-run savings!
– Ride the ARM Wave: An adjustable-rate mortgage starts low and fluctuates. If you’re a savvy surfer, this could be your wave.
– Government-Backed Loans: Yes, they have their own rules but offer some of the lowest rates in town.
3. The Great Mortgage Hunt: Shop & Compare
One alarming rate doesn’t mean the market’s dry. There are plenty of fish, so cast your net wide. Quinn Arnold of Arnold and Mote Wealth Management advises, “Shop around with different banks and brokers, and do this well before looking at houses.”
Remember, when you shop within 45 days, multiple credit checks consolidate into one, safeguarding your score. So, embark on your mortgage treasure hunt and compare away!
The Grand Finale: Carpe Diem!
Gone are the days of historic lows. Yet, with a strategic move here and a calculated step there, you can still secure a stellar mortgage rate in the current scenario. And as with most good things in the financial world, sooner is often better than later.
Feel the financial sands shifting beneath your feet? Now’s the time to seize the day. Dive in, explore, and come up with a pearl of a mortgage rate that makes your home-buying dream a sunlit reality! Explore today’s best rates!