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
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.
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.
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, 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 a 5-year or 7-year fixed-rate mortgage.) While
both said "30-year", they're not the same type of loan. For
Loan, 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.
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 want to find a broker who is
energetic, flexible & knowledgeable out finance and loans. You need someone who has
your best interests in mind.
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