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How to get the Best Mortgage Rate

Posted on: 11 February 2019

House keys

Thinking about buying a home? Well, you're in good company. 75% of Americans say buying a home is a priority. 32% intend to do so in the next five years. Most would call buying a home a "good investment" and they're right! However, the costs of making such a life-changing investment can vary widely with the mortgage you get.

But don't worry, Fig is here to tell you the top things you need to know when searching for the perfect mortgage!

Shop Around

Do your research and search online for the best options. Many people settle for a rate given by the financial institution at which they do most of their personal banking. However, you can get a mortgage from many places. Use google and get thrifty!

Save Up Some Cash

You'll usually want to put some money down to get the lowest rate. 20% is the goal here. Most lenders will accept less than that, but you'll end up paying more in the long run! Here are a few quick ways to save up:

  • Put $20 aside each day. That'll get you more than $35,000 in the bank in five years! That'd make a dent on a quality home.
  • Buy some U.S. 5 year bonds. These bonds will yield you more interest than a traditional savings account and will keep you hoenst. No credit check needed!
  • Take out a Fig Credit Builder! This is a Fig savings account that will improve your credit score, while helping you save money. Save $1000 in a year and get a lower mortgage rate with your shiny new score!

Improve Your Credit

It's simple. Customers with higher credit scores get the lowest mortgage rates. Since you'll likely be paying off a mortgage for fifteen years, it's worth it to take at least one year to focus on improving your credit score. Here are a few ways:

  • Take out a credit builder loan. The Fig Credit Builder is a great way to improve your credit over the course of one year (plus the interest rate is less than 4%!). Learn more.
  • Keep balances low. Keep the balances on your credit cards low and try to pay off debt rather than move it around.
  • Make sure your credit reports are accurate. Check your credit report at a reputable website like Credit Karma and make sure everyone is reporting correctly about you!

Learn more about building credit with Fig HERE

Lock In Your Rate

Many lenders will lock in a rate for you for a small fee. After you've secured the loan, ask about this option to ensure that you won't be paying more later if mortgage rates rise!

Make a Plan (and stick to it)

The most important thing you can do is stay consistent. Buying a home is one of the most stressful (and exciting!) events in a person's life, so there's no need to rush. Think carefully, critically, and practically, and you'll be on your way to building the life you've dreamed of.

We hope you enjoyed our Morgage Rate Guide! If you have any other suggestions or tips, send us an email at founders@figloans.com! We’d love to share them with the rest of the Fig Family.

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