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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 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 of this
information is readily available online. 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 are 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 are 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 do not have the time
or experience to "do it yourself," look for a
qualified mortgage broker that can assist in
finding the right mortgage for you. Ask friends
and 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 and knowledgeable about finance and loans
and someone who has your best interests in
mind.
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