Interest Rate on a Mortgage? What gives you a better rate?

Question

Which one would be more important when getting a low interest rate on a mortgage?

Your credit?
or
How much down payment you give?

I mean, if I walk into a place and say I want to buy a house and the house is $60,000 and I can give half of it in a down payment right then and there ($30,000) would that have an effect on how much interest rate I will get, even if my credit isn't very good?

(I just can't imagine it having no effect on the rate I would get.)

Answer 1

The best thing to due is put down 20% (plus closing) this will save you the Private Mortgage Insurance payment of appox 30/ month. This should leave you appox 15k..Fix your credit with the bulk of this money (pay off any "charge off's") if your able to remove most if not all "derogatory" items before you apply this will help your credit score and thus your rate..Save 3 to five thousand for post purchase repairs and upgrades..Believe me you will be glad you did..Good Luck

Answer 2

Unfortunately it won't absolutely get you a AAA+ rate the same as if you have the AAA+ credit.

But if you do such a thing as put 50% down, your mtg payment will be so low, even if the rate is a tad high, who cares? You can make the payments on time every month for a year and then you will get a better rate, if you have kept the rest of your credit in good shape too. so don't dispare over credit and interest rates. Just be happy if you can be a homeowner and afford the payments.

best of luck,

Answer 3

Although the large down payment will help you qualify for the loan, it will not really effect your rate. That is based on credit history. You are still considered a risk based on your passed credit so the rate remains high. All that down payment shows them is someone lent you the money, or you managed to save it by not paying your other bills.

Answer 4

There interest rate you get on a home loan will be determined by your credit history and your credit score.
Stability in your job, payments on accounts and revolving credit cards, all these will affect your interest rate.

Answer 5

as said above, your credit score will better determine your interests rate. Check out www.RealEstateLinked.com to learn more, ask more questions and network with realtors and loan officers

Answer 6

the amount you but down is the most important factor because it determines your loan to value, the next most important would be your income and employment, then your credit score.

Answer 7

usually the spread of possible rates at a bank is small....so even a great score will not get you some unbelievable rate.

Answer 8

Your credit score.