Second Mortgage Interest Rates: How to Get the Best Deal

Filed by admin under Mortgages — 9:45 pm
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You spent a great deal effort making sure that the interest rates on your first mortgage were competitive. Looking for the best deal on second mortgage interest rates shouldn't be any different.

Build Equity

Generally, having more equity in your home will help lower your prospective interest rates.

Pay Your Bills on Time

Perhaps the best way to ensure that lenders offer you the lowest interest rates available is to maintain a positive payment history. Do you still have some overdue bills left to pay? Pay them now so that they aren't left lingering on your credit report.

Check Your Credit Report

Okay, so you think you've paid your bills on time, but are you really sure? Periodically checking your credit will ensure that you haven't overlooked any bills and that creditors haven't made any mistakes when crediting your accounts. If you find an error on your report, address the issue immediately. If the creditor is at fault, request that creditor fix the problem and make note of it on your credit report. Did you find an unpaid bill that you forgot when you made your last move? Make a note of it on your credit report so that future lenders will understand why you were late making payments.

Take Your Time

If you have negative payment history on your credit report, consider putting getting your second mortgage for another year or two. Remember, the longer you go without any negative marks on your credit report, the more likely you are to receive better interest rates.

Shop Around

If you are ready to take out a second mortgage loan now, shop around. Get quotes from at least four lenders before making a final decision. Interest rates among lenders can vary significantly, so shopping around for the best rates can save you thousands of dollars.

Be Informed

You can't know what a good interest rate is if you don't know what the national interest rate is. Generally, banks post these on signs throughout the lobby. However, simply reading the real estate section will provide you with an accurate guide of current interest rates.

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