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Mortgage Tips to Get an Affordable Mortgage

Mortgage Tips to Get an Affordable Mortgage
Betsalel Cohen
UpdatedMay 14, 2024
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    4 min read
Key Takeaways:
  • Make sure the mortgage payments fit your budget.
  • Check mortgage rates.
  • Show the lender that you have the ability to repay the loan.

Mortgage Tips Part II: Tips to Find an Affordable Mortgage

More Mortgage Tips offers you three articles with detailed mortgage shopping tips. This article has great tips to help you get an affordable mortgage. Check out our other two articles covering mortgage-shopping tips in these areas:

Three Mortgage Shopping Tips to Help You Get an Affordable Mortgage

It is easier than ever to get a mortgage quote with online mortgage shopping. You can get personalized quotes focused on your geographical area and your situation.

However, before you start shopping and speak with a lender, get yourself organized. Review your budget and think about how much you can afford to spend each month. mortgage tips will help you shop for a mortgage that fits your budget and financial situation.

Check Mortgage Offers

Mortgage rates fluctuate. Learn about today’s mortgage rates at mortgage rate offer page.

The following mortgage tips will help you get an affordable mortgage. They focus on three areas that you need to know about: your budget, mortgage rates, and the documentation lenders want to see.

Mortgage Tip # 4: Check Your Budget Again

Owning a home is a long-term financial obligation. You must understand the different costs and expenses you're committing to pay, as well as how they fit into your budget. When shopping for a home and mortgage, work out different scenarios, so you are prepared for a variety of circumstances.

Here are a few mortgage tips to help you check your budget and find an affordable mortgage:

  • Include all of your potential costs. Don't neglect to include your property taxes and homeowner insurance, two significant expenses.
  • Repair and maintenance expenses greatly vary between house and region. Prepare to spend at least 1% per year of the house's value on upkeep. These are not ongoing monthly expenses, so make sure that you include them in your budget, so you can cover them when the need arises.
  • Consider your family situation and future expenses. A growing family means more expenses.
  • Lenders look for a two-year employment record and steady monthly income.

Mortgage Tips #5: Check out Mortgage Rates

Lower mortgage rates translate into lower monthly payments. If rates increase, then you may be able to afford a less expensive home and a smaller mortgage. Check out different mortgage programs, including rates and fees.

Here is some shopping for mortgage tips that will help you check mortgage rates and find an affordable mortgage:

  • Check out today’s mortgage rates at an online site.
  • Don’t do extensive shopping until you are ready to purchase a home or refinance your current mortgage. Rates change often.
  • If you are looking for the maximum amount you can borrow, then use a 30-year fixed-rate mortgage to calculate your payments.
  • Use a fixed rate no-cost loan as the basis for your affordability. Don’t max out your loan size using an ARM or teaser rate.

Quick Tip: Check out the mortgage rate table and find real-time mortgage offers.

Mortgage Tip #6: Show the Lender that You Have the Ability to Repay

Lenders are required to check and verify your income, debts, and financial situation. With the new mortgage rules that are in place, The Qualified Mortgage rule and the Ability to Repay Rule, expect lenders to be even more cautious and demanding.

Here are a few mortgage tips that will help you show a lender that you can repay the loan and get an affordable mortgage:

  • Put together your income documents. Start with the first two pages of your last two 1040s and pay stubs from the previous two months.
  • If you are self-employed, then consult with your tax preparer who can help get the documents and determine your average income.
  • There are seasoning requirements for a down-payment. If you are using gift money for your down-payment, be prepared to show the lender the source of the funds. You may need to have the funds in your account for a certain number of months.
  • If you are renting, get proof of your rental payments. Lenders want to see proof of your last two years of residency.
  • Put together information regarding any passive income. Lenders will consider your investment income or use a strong portfolio as a compensating factor.
  • Be prepared to give an explanation to the lender about any negative item (such as a previous bankruptcy) on your credit report.
Get a Free mortgage quote

Before you move forward with your home purchase or refinance, get a pre-approval from a mortgage provider.

For more mortgage tips check out our other article about mortgage tips to getting qualified and mortgage tips to getting the best mortgage rates and terms.

Mortgage market: a pulse check

Mortgage rate fluctuations should come as no surprise. If you are buying a home or refinancing your existing mortgage, it is important to stay informed about the current mortgage rates.

Mortgage rates April 10, 2024
According to Freddie Mac, the 30-year mortgage rate for the week of April 10, 2024 stands at 6.88%. This 6 basis points increase from the previous week's rate.
Additionally, Freddie Mac reports that the 15-year mortgage rate for April 10, 2024 is 6.16%, indicating a 10 basis points increase from previous week’s rates.
Note: A basis point is equal to one-hundredth of one percent (0.01%). In numerical terms, if the mortgage rate changes by 20 basis points, it means the rate has changed by 0.20%.

What does the mortgage rate mean for you?
Mortgage rates play a vital role in determining your monthly payment. Let's take a look at the avergage interest rates (APR) for April 14, 2024 based on Zillow data for borrowers with a high credit score (680-740) in the United States:

  • For a 30-year conventional loan, the interest rate is 7.09%.
  • If you opt for a 15-year conventional loan, the interest rate stands at 6.29%.
    Using the rates mentioned above, a $279,082 30-year-year mortgage would result in a monthly payment of $1,874. On the other hand, a 15-year mortgage would require a monthly payment of approximately $2,399.

Simplify your mortgage journey: Shop around and get pre-approved today!
To make the home-buying or refinancing process a breeze, we highly recommend shopping around for mortgages and getting pre-approved. So, why not Check Out mortgage rates now for the best options available.



BBrad Stroh, Aug, 2014
Yes, don't extend your loan duration beyond your home ownership period; unless in an extreme economic environment with an inverted yield curve (which we are not currently in).
LLydia Cohen, Jul, 2014
I am planning on moving in five years? Should I consider a 5/1 ARM?