5 Steps to getting a Lower Mortgage Rate: These are a MUST!!!

When buying a house, it is in your best interest to have as low of an Interest Rate as possible. In order to do this, there are several things you must be aware of.

Hey guys uh good afternoon it’s angelo christian financial thank you so much for watching real estate insider our podcast uh we’ve been actively lending in america commercial residential loans for over 20 years i’ve done billions on lending helped you know hundreds of thousands of people all over the country and today we’re talking about a really important topic

Uh secrets to get a low mortgage rate are there really secrets yes there are secrets and strategies you better believe it uh to get a low mortgage rate you better stay tuned because at the end i’m going to release a bonus secret on how to help you to get the lowest mortgage rate to lock in who doesn’t want a lower fixed rate everyone in america you know if you’re

If you’re watching this video give us a thumbs up if you want a low fixed rate there are strategies and secrets uh that you can use to employ with your lender with your bank to make sure that you’re getting the lowest fixed rate so that way you don’t pay a higher interest rate and angelo is going to share those with you guys today to make sure that you can get

The lowest fixed rate and these are the secrets that i’ve learned over the last 20 years of helping you know hundreds of thousands of people all over the country to get the best interest rate so basically there’s five of them i have one bonus one at the end i want you to watch so the biggest things that are important here is the first one obviously your credit

You want to have at least ideally and remember lenders they use fico score eight um as their reporting module for credit you wanna have your middle credit score at 760 or higher 760 is the highest tier one matrix for pricing for lenders and you have three credit scores equifax transunion experian ideally you want to have that fico score at least 760 or higher

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The middle score on fico score eight i’m not talking about advantage score fico score five or any of those other modules talking about fico score eight um and you want to have it at least at 760 or middle score higher the other thing is that you want to make sure that you don’t have a bunch of inquiries if you do we have software videos in different places that

Can delete those inquiries if lenders have seen that you’ve shopped too much they may raise your interest rate because they think you’re a risk so if you have a ton of inquiries that’s not good you want to get those deleted because they may think that you’re not able to get approved for credit and a lot of inquiries will also help reduce they’ll actually lower

Your credit score so that’s not good the other thing that’s also really important what lenders look at is your debt to income ratio and ideally you want your debt to income ratio to be below 43 you can get a mortgage loan at a 50 debt ratio 55 debt ratio even with va loans up to a 60 debt ratio but what happens is when you do that it could raise the interest

Rate because you’re more of a risk because you have so much debt so you want to have your debt to income ratio below 43 if you want to learn how to calculate that income ratio watch some of my videos on my youtube channel learning how to calculate that to income ratio we got a ton of those on that topic the other thing that’s also really important is uh three

Months of reserves now what are reserves that’s your mortgage payment times three months if you try to get a mortgage loan you don’t have any reserves or any money in your bank that looks like a high risk and then lender could charge you a higher rate so if you have more money in your bank account more reserves uh then they’ll give you a lower interest rate

Okay because what their concern is that if you lost your job could you still make your house payment until you found a new job so that’s what the reserves mean and then obviously loan to value ratio this is the how much you’re financing versus the value of the home so lenders like a big spread between what the value is and how much the loan is because if you go

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Into foreclosure if the loan is very close to the value it’s higher risk to the lender because they have to liquidate the property they may lose money so if you put a huge down payment uh they’ll give you a very low rate like if you put 40 or 50 percent down they’ll give you the lowest rate possible uh for fha you just have to put three and a half percent down

For fha and conventional you’ll get a lower rate if you put five percent down versus if you only do three percent now okay so to get a lower rate um obviously the more money you put down the lower interest rate you’re gonna get it starts with fha at three and a half percent conventional you can get a conventional one with three percent down but you will pay a

Higher rate if you can afford to put five percent down put five percent down uh really important and lastly the bonus one if you guys stay to the end to watch it what’s very very important that you do and i have had videos on this topic is you have to watch what this what the bond market is doing okay particularly the 10-year treasury yield i have videos on how

When to lock your interest rate watch my video on when to lock your interest but the 10-year yield okay that has a correlation with interest rates so the 10-year treasury bond whenever that 10-year yield is going up okay the yield is going higher that means that interest rates are going what interest rates are going lower okay so when the 10-year yield is going

Down interest rates are going up so why does this matter well let’s say that you go to lock your interest rate that day and the fed raises rates and the yield is going down because the rates are going up that means that your interest rate is going to be higher so you can just log in on this on you can anywhere google finance yahoo finance bloomberg you could

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Just pull it up in your google search 10 your 10-year yield price today on marketwatch and see what is the 10-year yield doing if that rate’s going up there’s 90 percent correlation with uh interest rates that those uh interest rates are going to go up higher too so it’s not a good time to lock your rate this is a very very important thing because if the fed’s

Raising rates it doesn’t matter these things aren’t going to matter and push it as much because now the fed has raised rates so you’re still going to pay a higher rate okay this is a really really important topic right now we’re in extremely is the end of 2020 we’re an extremely low rate environment and you know it’s not really doesn’t really matter but in 2021

Nobody knows what’s going to happen for sure with interest rates um and they could go up they could go much higher so be mindful of this and you can also watch my video on you know on 10 year yields and when to lock in your interest rate because if you if you lock in at the wrong time you could pay a half a percent more on your interest and on a 300 000 home

That’s 150 000 in interest so these are the most important things the secrets to get a low mortgage rate if we can help you call or text our office at eight three two four three one six three three one we’re a national lender commercial and residential serving america since two thousand five let us help you we do uh investor loans help loans investor lines

Of credit no doc loans jumbo loans conventional fha va usda we’d love to hear from you call or text our office at 832-431-6331 and check out my next video thank you bye

Transcribed from video
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