If you’re seeking an interest-only jumbo or super jumbo mortgage, you’ll want the lowest interest rates applied to your loan. A smaller interest rate simply means smaller monthly payments. The secret to attaining a low interest rate may be as simple as improving your credit. However, attaining good credit isn’t as simple as it sounds. There are several factors that play into one’s credit score, and attaining good credit takes time. If you’re looking to improve your credit score to knock down your interest payment, you’ll want to do the following:
Pay Bills on Time
When you get a bill, pay it. Overdue bills are a red flag to lenders, and they’ll knock your credit score down. If you’re looking into an interest-only jumbo or super jumbo mortgage, attain a better interest rate – don’t let your bills go unpaid.
Don’t Stack Up Credit Accounts
It may be tempting to open up a credit card to get the discounts and perks that are promised, but with superfluous credit accounts, your credit score will drop. Keep your credit record uncluttered, and stick to just a few credit accounts. You’ll find that you’re one step closer to attaining excellent rates on your interest-only jumbo or super jumbo mortgage; and that means long term savings for the duration of your loan.
Keep Credit Balances Low
In addition to limiting the amount of credit accounts you have in your name, try to limit the amount of credit you owe. It’s okay to have some credit debt, but avoid maxing out credit cards and hitting credit limits on loans. Lenders prefer to lend to clients that don’t have significant numbers in the red.
Pay Off Debts (Don’t Move Them)
Moving your debt from account to account doesn’t improve your credit. Pay your debts. As you slowly pay off credit accounts, you’ll also slowly build your credit. That can make you one step closer to attaining an interest-only jumbo or super jumbo mortgage with a desireable interest rate.
If you’re curious about the interest rate that we can provide on our interest-only jumbo and super jumbo loans, use our online form to get a rate quote from us right away.