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[H1132]How To Get Best Mortgage Rate

by The Super Agent, The

The Greater Phoenix area has a fast growing population. The favorable climate and Arizona economy has families moving into the Greater Phoenix in record numbers. With all the new residents moving into Phoenix, or Arizona for that matter, many customers moving want to know: How can Phoenix residents keep their insurance costs under control and get the best insurance rates in Phoenix? Here's some professional advice:

For your car insurance in Phoenix: The State of Arizona requires mandatory car insurance for driving on Arizona roadways.Arizona requires all drivers to carry compulsory liability limits of at least $15,000 per person bodily injury, $30,000 total for bodily injury and $10,000 for property damage liability.

This is the minimum to drive legally in all of Arizona, including Phoenix. This coverage only serves to protect drivers you may hit in the event of an accident--these mandatory coverages do nothing to repair your car, regardless of fault.

Additional coverages can be purchased from your insurance company to repair your vehicle in the event of an accident--regardless of fault.

Comprehensive coverage pays for losses to your vehicle in the event of fire, theft, vandalism and anything else that is NOT part of an accident.

Collision coverage pays for losses to your vehicle in the event of an accident. Collision coverage does not pay for repairs resulting from vandalism, Comprehensive coverage pays for that.

Purchasing an insurance policy with both the mandatory liability limits required by Arizona law and Comprehensive and Collision coverage is customarily known as "full coverage" insurance.

Be prepared that Comprehensive and Collision coverages both carry a deductible clause that the insured must pay out of pocket before the insurance company pays for the complete repairs.

Factors that affect your auto insurance rate may include: Replacement cost of the vehicle, driving record, city, county or even zip code that the vehicle is customarily garaged (parked overnight) in and finally the driver's age.

When you're considering getting a mortgage or car loan'or any type of loan, really?there are three things you should focus on before you apply. These loan factors are called the "big three" because they could save you big money if you know how to use them to your advantage.

FACTOR #1: Your credit score. The first thing you should do is check your credit score. Scores above 680 will help you qualify for standard rates. The higher your credit score, the lower your interest rate will be. Get your credit score as high as you can before you apply. Here are a couple ways you can do that:

* Order a credit report and make sure it's accurate. If there are mistakes, have them corrected by filing a dispute.

* Pay your bills on time, especially for at least 6 months before applying for a loan.

* Keep your credit card balances way below your credit limits and do not apply for any more credit.

Your credit scores can be improved if you work at it.

FACTOR #2: Debt-to-income ratio. Lenders need to be sure that you can repay your loan. So they use a calculation called your "debt-to-income ratio" to help them figure out where you stand. You can determine your debt-to-income ratio by adding up your monthly debts and dividing that amount by your monthly income. A debt-to-income ratio under 20-30% is usually considered good and will help you be seen as financially secure.

If you're not hitting the 20-30% mark, try to lower the amount of your monthly debt. Create a monthly spending plan to help you save money. You'll want to shrink your debt as much as you can before you apply for your loan. You may also be able to increase your income by co-signing with your spouse.

FACTOR #3: Loan-to-value ratio. Another thing that will affect your interest rate is the loan-to-value ratio. This ratio helps you work out how much you can afford to borrow (at the best rates). All you do is divide the loan amount by the property's value. If your loan-to-value ratio is above 80%, your rates could jump up quite a bit. So the trick here is to make sure your loan-to-value ratio is below 80%. You can do that by finding a less expensive home (or car) or saving for a bigger down payment.

Keep these big three factors in mind as you prepare for a loan, and you can enjoy BIG savings on your new home or car.

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Both The Super Agent & Elena Laramie are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

The Super Agent has sinced written about articles on various topics from Finances. The Super Agent is a professional insurance agent, writer and marketer. For further information about Phoenix insurance or other types of Arizona insurance visit. The Super Agent's top article generates over 590 views. to your Favourites.

Elena Laramie has sinced written about articles on various topics from Credit Card Offers, Finances and Free Credit Report Score. TransUnion's TrueCredit.com provides millions of consumers with tools to manage their own credit health and achieve greater control over their finances, through easy-to-use educational materials, free monthly newsletters and personal. Elena Laramie's top article generates over 246000 views. to your Favourites.