Mortgage rates around the country are near historic lows. And that means it’s still a good time to buy a home, whether in McCormick Ranch, or any other community. The main reason rates are so low partly has to do with Britain leaving the European Union and many worried investors moving their money into U.S. Treasury bonds. Since demand for bonds is rising, interest rates are dropping and that’s trickling down into mortgage rates.
On a 30-year fixed mortgage, consumerreports.com says interest rates are on average around 3.56%. Last year, interest rates were closer to 4% according to HSH Associates, a New Jersey-based publisher of residential lending rates. Fifteen-year fixed mortgages now average about 2.98 percent.
So whether it’s a McCormick Ranch home for sale or one in another neighborhood, now is a good time to take advantage of low interest rates. But keep in mind, banks won’t give the low rates to everyone. Below are a few situations that could prevent you from getting the best mortgage rate.
— Being self-employed. Lenders want to see steady income or an increase in income if you’re self-employed. Unless they see this, they’re not always anxious to give you a great interest rate. You should be able to get around this by showing lenders your annual or quarterly estimated income-tax return submitted to the IRS over the last few years. Or if you’ve had a gap in employment, you’ll need to submit several years of tax returns.
— Low credit score. It doesn’t matter the price of home you’re considering, whether in McCormick Ranch or in a less expensive neighborhood, if your FICO score is below 760, it’s going to be hard to get a low mortgage rate. If you do have a low score, check with the major credit reporting agencies — Equifax, Experian, and TransUnion — and make sure there are no errors on your report. Paying down debt and paying your bills on time help in boosting that score.
— Too much debt. It’s easy when you have a home for sale in McCormick Ranch to get into a lot of debt, especially with home improvements and decorating. But that can work against you when it comes to getting a good interest rate. All household debt shouldn’t be more than 36% of your gross income.
— Already denied. Whether it’s a McCormick Ranch home for sale or another one you’re trying to buy, if you’ve already been denied by one or two lenders, you probably won’t qualified for a good interest rate.