You see advertisements for those historically-low mortgage interest rates everywhere. So naturally, you figure it’s time to refinance or apply for a new mortgage. But once your application is accepted, you realize your interest rate is one – or even two – percentage points higher than the national average. What happened?
In a nutshell, the lender thought you were a risk. That’s because one way to look at your mortgage interest rate is that it’s a representation of how much of a risk a lender believes you to be: the higher the risk, the higher the cost of borrowing the money.
The natural next question is: What makes for a low-risk mortgage applicant? Well, we spoke to some experts to find out. So read on to see what it takes to qualify for those super-low mortgage interest rates.
Criteria #1: Credit Score of 740 and above
When a lender is…
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