Summary List PlacementTable of Contents: Masthead StickyBuying a home in Missouri
According to Zillow, the typical home value in Missouri is lower than the typical value of $272,446 across the US. The typical home value in Missouri is $183,031, and home values have increased 9.8% over the past year.
Missouri first-time homebuyer programs
Down payment assistance: The Community Action Agency of St. Louis County gives down payment assistance loans of $3,000 to $5,000, depending on where you live.
Cash Assistance Loan: You may receive up to 4% of your mortgage amount toward a down payment from the Missouri Housing Development Commission. The government will forgive your loan if you stay in the home for 10 years, with decreasing payments starting after five years.
Federal Housing Administration mortgage: You can get a down payment of 3.5% with a credit score of at least 580, or get a mortgage with a credit score between 500 and 580 with 10% down using this loan, which is also called an FHA loan.
United States Department of Agriculture mortgage: These loans, also called USDA loans, can be useful if you are a low-to-moderate income borrower looking to buy a home in a rural or suburban area.
Veterans Affairs mortgage: These mortgages, also called VA loans, are for active-service military members or veterans, or spouses of members who have died and can provide lower interest rates than conventional mortgages.
Refinancing your mortgage in Missouri
Mortgage refinance rates are at all-time lows right now, so it could be a good idea to switch your current mortgage for one with a better interest rate — especially if the new rate would be significantly lower.
You may decide to refinance with the same lender that gave you your initial mortgage, but it’s not always the best idea. A different lender may offer you a better deal the second time around. Shop around for a company that will offer the best interest rate and charge relatively low fees.
How to get a low interest rate on your mortgage
Here are some tips for landing a good interest rate on your mortgage:
Save more for a down payment. With a conventional loan, you may be able to put down as little as 3%. But lenders reward a higher down payment with a better interest rate. Mortgage rates should stay low for a while, so you may have time to save a bigger down payment.
Increase your credit score. Many lenders require a minimum credit score of 620 to receive a mortgage. But you can land a better interest rate with a higher score. The most important factor for boosting your score is to pay all your bills on time.
Source:: Business Insider