Land Loan Rates: 5 Tips To Keep Them Down

When borrowing money to purchase a vacant lot, land loan rates are crucial. The interest you pay will make a big difference in your monthly payments. Here are some tips that can help you to keep your land loan rates low.

  • Start with a low fixed rate. Variable loan rates will fluctuate over time, and therefore cost you more money. Seek out a lender that will offer you a low, fixed rate.

  • Have a plan. When applying for the loan, it may help you to have a written proposal of what you will do with the land. The lender may offer you lower land rates in light of equity potential.

  • Pay your bill on time. Not every lender will penalize you with higher interest if you default on payments, but it can happen. Make sure that you read the fine print on your agreement. Keep the rates low by never missing a payment.

  • Keep your credit score high. Show responsible use of credit and you will most likely be eligible for the lowest land loan rates lenders are offering.

  • Make a hefty down payment. The more you put into your down payment, the lower your payments will be. This often affects the interest rate by a percentage point or more.

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