Have you been disappointed with the mortgage loan rates that have been offered to you by banks? Maybe you've begun to question if you really can afford to buy a home with the high rates you're being offered. While every situation is different, there are a few methods you can try to help secure a lower mortgage rate.

Improve your credit score.

Banks rely heavily on your credit score when determining what rate to offer you. The higher your credit score, the more confident they can be that you will pay off the loan, so the less they "charge" you in interest. If your credit score is not as high as it could be, you might want to spend a few months improving it and then re-apply for a loan again. Some ways to improve your credit score include:

• Paying down balances on your credit cards. (High outstanding balances can hurt your score).
• Always, always, always paying your bills on time.
• Checking over your credit report for faulty reporting and asking that anything that is listed incorrectly is removed.

Check with a credit union.

If you do not want to wait a few months for your score to improve, or if your score is already quite high (above 700) and you're still looking for a lower rate, consider applying for loans with some credit unions in your area. Ask your employer if there are any credit unions open to people in your profession. You can also check with any volunteer organizations or churches you may belong to. Usually, credit unions are selective as to who they will loan money to, but if they do approve your loan, you can expect it to be at a lower interest rate than one you would get from a bank.

See if a relative is willing to cosign.

If your short credit history is to blame for your high interest rates (for instance, if you just graduated from college and thus do not have a long history of paying off debts), then consider asking someone with a longer credit history to cosign your mortgage. Their longer credit history may mean that the bank has more confidence that the loan will be paid back, resulting in a lower interest rate. Realize that asking someone to cosign your mortgage is asking for a huge favor, since if you default on payments, that person will be responsible to make them. Only get into this situation if you are absolutely positive you can continue paying on the loan and that you have a very good relationship with the cosigner.

If you try one or more of the tips above, you're likely to find mortgage loans with lower interest rates. A small difference like 0.10 percent can make a huge impact on the amount you pay over the life of your loan! For more tips and advice, contact a mortgage broker.

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