Getting the Best Rates for Your Mortgage

Naturally, you want to get the best deal for the least amount of money. This holds true for mortgage rates, as well.

A lower interest rate means a lower monthly mortgage payment, which can save you much money in the long run. Also it is easer to qualify for a lower payment than a higher one.

You basically have two routes to finding the best rate. The first is to do all the research yourself. The second is to use a mortgage broker.

Do-it-Yourself

With the advent of the Internet, much information is readily available. Once you have educated yourself sufficiently about real estate loans, all it takes is the time and energy to sift through it to find the information you need.

Rates change quickly, so that great rate you find today might not be there tomorrow. Once you find the rate you desire, submit a loan application and lock in that rate. Click on the link below to browse online sources for interest rates.

When comparing loans, make sure that you are comparing loans of the same type. For example, you find that "Loan A" for a 30-year loan has a much lower interest rate than "Loan B" (also for 30 years). Upon further inspection you find that "Loan A" is technically an adjustable rate mortgage, one whose payment is based on a 30-year amortization, but is due through either payment or refinancing at the end of 5 or 7 years. (You will frequently hear these referred to as 5-year or 7-year fixed-rate mortgages.) While both said "30-year", they're noy the same type of loan. For "Loan B", the payment is truly fixed for a 30-year term.

Ask the lender for a statement detailing all fees associated with the loan. Factors such as "points" (loan fee), interest rate and "garbage fees" (extra fees which some lenders charge) can vary greatly from one lender to another.

Mortgage Broker

If you don't have the time or experience to "do it yourself", look for a qualified mortgage broker. Ask friends and associates who have refinanced or purchased recently if they have a broker they can recommend. You want to find a broker who is energetic, flexible, and knowledgeable about finance and loans. You need someone who has your best interests in mind.

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