How to Get the Best Mortgage Rate in Richmond, VA

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When shopping for a mortgage, one of the most important features to consider is the mortgage rate. We understand how a small difference in points you’ll be paying back for the next 15 or 30 years can save you thousands of dollars over time. The lower the rate, the less you’ll pay throughout the life of your loan.

Whether you’ve already started shopping or you’ve just begun thinking about saving up for a down payment, read our guide below for how to get the lowest mortgage rate in Richmond, VA. 

Find Low Rates With Non-Conventional Loans

The U.S. government isn’t a mortgage lender, but it does play a role in helping more Americans become homeowners. These loans are protected by mortgage insurance making it easier to offer flexibility for qualifying along with competitive interest rates.

Three government agencies back mortgages: the Federal Housing Administration (FHA loans), the U.S. Department of Agriculture (USDA loans), and the U.S. Department of Veterans Affairs (VA loans).

Interest rates for government-backed loans are usually lower than the standard conventional loan type. FHA loans tend to be a little higher for borrowers with low to no credit. VA loans, however, have generally slightly lower interest rates because the VA takes on the risk of the loan. Rural development (USDA) loans have comparable interest rates.

Get Your Down Payment Ready

Whether you’re looking to settle down in the Northside or the Southside of Richmond, one thing is for sure – the more money you put down, the better your chances of getting a low mortgage rate. Since a larger down payment lowers your loan-to-value (LTV) ratio, it pays to save up!

An LTV ratio shows how much of the home’s price your lender is financing. Low ratios typically come with low interest rates because they’re less risky for the lender to take on.

In addition to giving you a better chance at a lower rate, larger down payments can also help you avoid private mortgage insurance (PMI) which adds cost to your monthly payment.

Check out our down payment calculator to compare up to three different mortgage options and find the one that works best for you.

Consider Buying Discount Points

If you’re looking for how to get the lowest mortgage rate, buying points might be a great option for you! Discount points allow you to purchase a lower interest rate. A point costs 1% of the loan amount.

For example, one point will cost you $1,000 if you take out a $100,000 mortgage. Purchasing a point means you’re prepaying the interest to have a smaller monthly payment.

To determine whether you can get the lowest rate buying discount points, try our discount points calculator as a helpful tool in addition to figuring out your budget, down payment, loan terms, and the likelihood of staying in your new home.

The Benefit of Working With a Credit Union

When it comes to securing the lowest mortgage rate, credit unions often have the best options to help you save!

Credit unions are not-for-profit organizations. Their not-for-profit status allows them to offer lower interest rates to members. And as a member, you have a right to vote on what’s important to you – and that includes low interest rates on home loans.

Look locally for your neighborhood Call Federal. We’re easily found around the Richmond area with locations near Tuckahoe, Lakeside, Woodlake, and more!

Finding The Best Mortgage With Low Rates

We’ve covered how to get the lowest mortgage rates, but you may still be wondering which mortgage to choose. At Call Federal, we offer a variety of mortgage loan options to fit your needs and budget and we’re happy to help guide you along the way. Stop by your nearest branch location, give us a call, or apply online to get started today!

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