If you’re in the market for a home in Durango, Colorado, where interest rates are currently high, here are five tips to help you secure a good mortgage rate and save money on interest:
- Shop around for a mortgage: Different lenders in Durango may offer different interest rates, so it’s important to compare offers from multiple lenders to find the best deal. This can be time-consuming, but it can be well worth the effort in the end.
- Consider a shorter-term loan: While 30-year mortgages are the most common, shorter-term loans (such as 15-year mortgages) often come with lower interest rates. If you can afford the higher monthly payments, a shorter-term loan can be a good way to save money on interest over the life of your loan.
- Maybe make a larger down payment: A larger down payment can help you secure a lower interest rate, since lenders view borrowers with a smaller down payment as a higher risk. If you can save up for a larger down payment, it can be a good way to reduce your interest rate and save money over time.
- Look into government-backed loan programs: Some government programs, such as those backed by the Federal Housing Administration (FHA), offer low-interest loans to qualified buyers in Durango. If you meet the eligibility requirements, a government-backed loan can be a good option to consider.
- Improve your credit score: A higher credit score can help you qualify for a lower interest rate on your mortgage in Durango. Before you start shopping for a home, take steps to improve your credit by paying down debt and making all of your payments on time. This can help you save money on interest over the life of your loan.
Overall, buying a home in Durango when interest rates are high can be challenging, but it’s not impossible. By shopping around for a mortgage, considering a shorter-term loan, making a larger down payment, looking into government-backed loan programs, and improving your credit score, you can increase your chances of securing a good mortgage rate and save money on interest.
If you have any financial planning questions about buying a home in Durango, Colorado don’t hesitate to reach out to Oxford Financial Planner. Our team of experienced financial advisors can help you explore your options. Contact us today to learn more and get started on your journey to homeownership.