Help me get the best mortgage rate!

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ss98
Posts: 6
Joined: Tue Sep 07, 2021 5:06 pm

Help me get the best mortgage rate!

Post by ss98 »

Hi all,

Score is ~775. One bank said >800 will get me the best rate, other one (local CU) said it's all the same above >740. I have no clue if they are stating the facts or their policies are just different. I'm still leaning towards the first bank as they are offering some incentives towards closing costs. Is there a way to check their rate/credit tiers somehow without calling them directly?

Back to the main topic, I have about 5K to reduce some debt. My credit utilization is ~20% (38K/200K). But can't pay off more than 5K at this moment as I have to set aside the down payment. Out of that 38K, 10K is personal loan & the rest is CC balance (0 Apr for next 1.5 years). Of course, I wanted to pay it towards the personal loan to save the interest as the CC balance has 0 apr anyway. But I read somewhere that personal loan balance doesn't impact the credit score much and can actually help by improving the credit mix. So should I just use it to reduce the CC balance? Could anybody confirm? More importantly, will that 5K paydown really help me get over > 800 ? (I have already called all banks to increase my CC credit limits - so that's done) Thanks!
mattshwink
Posts: 428
Joined: Mon Sep 21, 2015 10:01 am

Re: Help me get the best mortgage rate!

Post by mattshwink »

So every bank/lender is a little different....what are they offering you? And are you putting 20% down?

A lot of places won't show you anything until they talk to you, and some even run your credit first (amerisave, loandepot, others).

I really like aimloan.com for seeing rates.

Nerdwallet.com can be useful, but won't show rates, but can get you in touch with folks that will help.

bankrate.com will show rates from multiple lenders, can be useful for comparison and finding a better deal too.
bradinsky
Posts: 696
Joined: Sat Jul 21, 2018 6:32 am
Location: Ohio

Re: Help me get the best mortgage rate!

Post by bradinsky »

3rd Federal Savings & Loan. The gain from waiting for your credit score to increase might be negated by any potential interest rate increases by the Fed.
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JupiterJones
Posts: 3235
Joined: Tue Aug 24, 2010 3:25 pm
Location: Nashville, TN

Re: Help me get the best mortgage rate!

Post by JupiterJones »

And bear in mind that the real goal is to pay as few dollars in borrowing costs over the time you have the loan as possible, of which a low interest rate is only one part. There's also avoiding PMI (as mattshwink alluded to). And there are the basic matters of how much you borrow in the first place and how quickly you can pay that off.

Shaving off a few tenths of a percent in interest is always nice, but so too is a big fat downpayment and a 15-year loan on an affordable home.
"Stay on target!" -- Davish Krail
Minty
Posts: 511
Joined: Sun Mar 24, 2013 3:19 pm
Location: NorCal

Re: Help me get the best mortgage rate!

Post by Minty »

Take a look at the Refinance MegaThread. The short version is (1) you will have to shop around among online lenders if you want the best deal; and (2) the difference between average and good deals is large. My practice is never to pay closing costs, either in cash or have them rolled into the loan, but instead pay a little higher rate to get a credit. Then you can refi whenever rates drop.
Core Four w/ nominal bonds & TIPS. Refi Rampage: Purchase: 3.875% 30 -> R1 3% 20 -> R2 2.375% 15 -> R3 1.99% 15 -> R4 1.875% 15
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