Community Mortgage Solutions - Palm Coast, Florida

Community Mortgage Solutions

1030 Palm Coast Pkwy
Suite 3
Palm Coast, FL 32137
Phone: 386-445-4111
Fax: 386-445-3111
Toll Free: 877-445-6320

How Can I Get A Lower Mortgage Rate?

1.) Shorter loan terms- lenders charge lower rates for loans with shorter terms. If you applied for a 30 year fixed, ask you r mortgage consultant about 20 and 15 year rates. Your payments will larger, but your rate will be lower.

2.) Adjustable ARMs- loans that are fixed for 2, 3, 5, 7 or 10 years. The lowest rate will be found with the lowest terms. The 5 year fixed period ARM is our most popular, because it gives you a lower rate without a lot of risk of increasing during the time frame you would be at that location. (The average homeowner is currently moving or refinancing every 3 to 5 years.)

3.) Improve your credit- the higher the score, the lower the rate. Community Mortgage Solutions can run your credit report through a simulator to let you know what is needed to obtain the score you desire. This requires patience (example: A client of ours had a 580 credit score, we ran him through the simulator and it gave him a small list of tasks for him to accomplish. Within 45 days the clients score went over 640, saving him a ton of money in his rate alone.)

4.) Increase your down payment- one of the main parameters for loan pricing is the loan to value percentage (loan amount/home value) of your loan. Borrowers using 95% or 100% loan to value financing will find themselves paying a higher interest rate. If you have access to additional cash, find out if you can get a lower rate at 80% or 90% loan to value and use the different interest rates to determine the best use of your available funds. Once you have closed your loan you can pull that equity back out with an equity loan. (No closing cost options available)

5.) Pay down the rate- lenders will give you the option to buy down your rate. If you plan on staying in your home for a long period of time, this could be a very attractive feature. Have your mortgage consultant show you the difference between both options. Buying down the rate in most cases is very beneficial to the borrower.