So you’re looking to buy a home! This can be the biggest purchase of a lifetime, and there are a lot of moving pieces involved in buying a home in Reno. One of these factors is your mortgage loan rate. How do you find a good mortgage loan rate offer? At Great Basin FCU, we are here to help you find the best mortgage loan rates in Reno.
Mortgage loan rates fluctuate. There are also many variables that factor into your mortgage loan rate. These factors include your credit score and your debt-to-income ratio.
Mortgage Loan Rates & Your Credit Score
Home buyers with poor credit may face higher mortgage loan rates. If you are looking to buy a home within the next year, start working on building and improving your credit to get better mortgage loan rates. Team up with your local credit union to learn how to build your credit and improve your credit score! If you take steps to show improved financial behavior, you may see lower mortgage loan rates for your Reno or Sparks home.
Mortgage Loan Rates & Debt-to-Income Ratio
The debt-to-income ratio or DTI is a big factor in determining mortgage loan rates. Your DTI is as straightforward as it sounds. DTI is a calculation of how much debt you have versus how much income you have coming in each month. There are two DTI ratio calculations to determine your mortgage loan rates for your Reno home. These two ratios are the front-end ratio and the back-end ratio.
The front-end ratio calculates what percentage of your income would go towards the expenses of owning a home in Reno. The front-end ratio is also called a housing ratio. If your front-end ratio is above 30%, you will get offers with higher mortgage loan rates in Reno.
The back-end ratio shows just how much of your income goes to monthly financial obligations. These obligations include paying off credit cards and existing loans. How much of your income goes straight to bills? How can you lower this ratio? If you can lower this debt-to-income ratio, you will get offers of lower mortgage loan rates from your Reno credit union or bank.
Refinancing for a Better Mortgage Loan Rate in Reno
People can refinance their homes at a lower mortgage loan rate. If mortgage loan rates have dropped since you bought your home, you can use the refinancing lower your mortgage loan rate.
The refinancing process does cost money, but it can be worth it if you end up saving on your home! You can also use refinancing to shorten your loan term, consolidate your debt, and more! Curious about refinancing? Give us a call.
Dependable Mortgage Rates with Reno’s Great Basin FCU
At Great Basin FCU, we help you get the best deal with your mortgage rates. Our credit union staff can help you through the home loan process, including finding good mortgage loan rates. We can even help you find out if you qualify for a mortgage loan pre-approval!
Stop by Great Basin FCU in Reno or Sparks to learn more about our mortgage loan rates. We are happy to answer your questions and help you in your home-buying journey. Apply for a mortgage or refinancing option with Great Basin FCU today!Share: