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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 easier 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 on your
own. 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 online resources to find the information you
need.
Rates change quickly. That great rate you find today might
not be there tomorrow. Once you find the rate you're looking
for, submit a loan application and lock in that rate.
Some sources for interest rates on the Internet include:
When comparing loans,
make sure that you're 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. Its payment
is based on a 30-year amortization, but becomes due through
either payment or refinancing at the end of 5 or 7 years.
These are frequently referred to as a 5-year or 7-year fixed-rate
mortgage. While both said "30-year", they're not
the same type of loan.
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 & associates
who have refinanced or purchased recently if they have a broker
they can recommend. You'll want to find a broker who is energetic,
flexible & knowledgeable about finance and loans. You
need someone who has your best interests in mind.
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