What is required to get the best interest rate on a 20 year mortgage?

Asked by Oak'swife, Williston, FL Sat Jul 28, 2012

My husbands credit score is 739. The home we are looking at is on the market for 90k. We will have 20 percent down, as we want to avoid paying PMI. We have also hear about buying points, what does that entail? Would that help us?

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Darrell D. D…, Agent, Schertz, TX
Sat Jul 28, 2012
Ok, if you are both qualifying together, you should have an equally great score or it may raise the rate and hurt him.

Assuming you both have similiar scores and are putting 20% down, you should qualify for a great interest rate. If you do a 15 year note, the rate will be lower than if you do a 30 year note. As far as buying a lower rate with points, I would advise against it. There are times where there will be benefit if the points are low for a large change in interest rate and you plan on occupying for many years, but usually the break even time is years.

Rates are so low right now and with 20% down and mid-700 scores, you should both be in great shape for low to mid 3% rates. Good Luck.
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