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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.
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