How to Identify Mortgage Rates
- 1). Order your credit report and score (see Resources). The credit report is free and is provided under the Fair Credit Reporting Act. Follow instructions on the report to order your credit score separately, for a fee.
- 2). Review your credit score to determine how it matches with general standards for good credit. Privacy Rights Clearinghouse, a national nonprofit consumer information company, reports that a score of 720 or higher represents excellent credit and could qualify you for the lowest interest rates on a mortgage. Scores below 620 are considered poor and will result in higher interest rates.
- 3). Visit with a housing counselor certified by the U.S. Department of Housing and Urban Development (see Resources). The counselors are knowledgeable about local mortgage rates and can and can help you identify rates that you may qualify. The counselor can also talk to you about the choosing between a fixed interest rate and an adjustable rate, and how to figure out mortgage loan fees.
- 4). Call lenders suggested by the housing counselor. Also call your bank or credit union and ask if you're eligible for a discount as an existing customer. Check additional rates by visiting the websites of other lenders.
