|
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:
Bank Rate Monitor (
http://www.bankrate.com )
E-Loan (
http://www.eloan.com )
Intuit (
http://www.quickenmortgage.com )
Own.com (
http://www.iOwn.com
)
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. |
