Urge to buy a new home but have fear of high interest rates? Low mortgage rates requires by everyone but is not available to everyone. Certain factors are required to get a home with low mortgage rate. Those who are not eligible to qualify these factors are not able to get home loans at lower rates. Six principal factors are to be cleared in order to get home loan at lower interest rates. These are good credit history, better down payment, selection of right lender, presence of stable job, presence of liabilities and loan type. These six factors decide the interest rate of your loan.
Excellent credit history
If you have outstanding credit history then getting loan is no more a big deal. Persons with good credit history find easy to get loans with quite lower interest rates. Good credit history gives surety to lenders that you will pay them back within time and will not give tension to them so they prefer you and gives you loans at smaller interest rates. The level excellence of your credit history decides the interest rate of your loan. Poor credit history owners can also get home loans but their interest rates are quite higher.
Down payment and lender
If you have given high down payment then your interest rate is also lower. But if you do not have sufficient money to give good down payment then you have to pay a bit higher interest rate. The higher the down payment, the greater benefit will be given on interest rates. Lenders are the ones who give loan. Always get proper and detailed information about all the lenders and then decide the perfect one for you. Many lenders are working with different terms and conditions so select the one which is ideal for you.
Job history and liabilities
Persons with stable jobs are more liable to give loans as they have proper income source so paying back loan is easy for them so they are given loans with less interest rates. The level of your job also decides your interest rates, if you have very good job and has some savings then you are able to give them good down payment which lowers your interest rate. If you have some liabilities then it gives surety to the lender that in case of any problem with your job you can still pay them with the help of your liabilities so the deal is made on low interest rates.
Loan type also plays a vital role in the interest rates. Government loans have better interest rates then private loans. So first try to get government loans as they are available on comparatively simple terms and conditions with good interest rates. It is recommended to select the loan type that is most suitable for you as you are bound in it for many years and your future is dependent on it. So have an enhanced market survey before having home loan in order to secure your future.
James is a free lancer writer of many sites and he loves to write articles personal loans.