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.
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:
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
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 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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