How To Find Lowest Mortgage Rates
Do you need to learn how to find the lowest mortgage rates? If you're looking for the lowest interest rates, today's Internet is the place to head to do some research. With so many mortgage lenders online, it's very easy to compare and find the lowest mortgage rates.
- Recognize the actual costs of a mortgage. There are a lot of fees which come along with a mortgage and can drive the price way up. Make sure you understand how many points (pre-paid interest) a mortgage will cost you. Ask the lender to show you paperwork detailing what the cost of the loan would be over the lifetime of the mortgage.
- You'll find the lowest mortgage rates by checking with at least two lenders for your next home loan. At a minimum, check with two lenders regarding the current mortgage rates and select the one who will offer the best service at the best price. Check some of the online lenders, like LendingTree, who will shop your qualifications around to more than one mortgage broker.
- Consider a fifteen year mortgage over a thirty year. You might find the lowest mortgage rates by checking a shorter term mortgage. Sure, it will cost you a bit more monthly, but it could very well save you thousands of dollars.
- You'll find the lowest mortgage rates by getting a "buy down" mortgage for your home loan. A "buy down" mortgage, such as a 3-2-1 buydown, means that the first year you'll pay three points under prime, the second year you'll pay two points under prime, and the third year you'll pay one point under prime. The issue is that prime fluctuates and, after year three, your mortgage can skyrocket yearly. If you are not considering a quick refinance, this is probably not the mortgage for you. Be very aware of the hidden dangers of a buy down mortgage.
- If you're a veteran, check with the VA administration for the lowest interest rates. The government gives some supplements to veterans so you might find a deal when you go through the VA.