Banks advertise their mortgage interest rates all the time. It goes without saying that they want to advertise the lowest rate possible, but that does not mean that you will qualify for that low rate. So, picture that you understand the difference between the actual rate their advertised rates.
Banks advertiser rates all over the TV, radio, and Internet. Many times they will advertise what is called a buydown rate versus what the actual rate is. I buydown rate typically includes the borrower to bring in thousands of dollars to buy down the rate.
When you look all over the Internet you going to see that there is a huge range of what companies market as their interest rate. Keep in mind that the mortgage interest rates come from the same place for every bank across the country. Some companies may be more aggressive with that rate they are given, but it should be very unusual for one bank to be more than one half point higher than another bank with all things being equal.
The next thing you need to know is what kind of fees is the mortgage broker or bank going to charge you. You typically don't want to go with them first person you talked to, but rather talk to three or four different lenders to help you decide. Each lender should give you a good faith estimate of the proposal. Keep in mind though, this is only an estimate and it does not mean that they have to include everything that may change during the process.
The second thing you need to do is make sure that you know your credit scores. This will help you shop with confidence and be able to provide the needed information to each lender. Here's the best place that we have found that gives a complete and accurate credit report.
The next thing you need to discover is whether you want a fixed rate, or an adjustable-rate loan. Most people these days are opting for a fixed rate because rates are very favorable, but there are several situations where an adjustable rate makes more sense. It just depends on your situation. Make sure that you're working with someone who provides you with both options, and shows you the pros and cons of each.
Make sure you check and see if there is a prepayment penalty on this loan.
The most important step of getting a new mortgage is to make sure that you're working with someone who knows what they're talking about. It goes without saying that in any industry there are the people that are great at the job, and there are people that are clueless. Believe me, I have worked with both
Banks advertiser rates all over the TV, radio, and Internet. Many times they will advertise what is called a buydown rate versus what the actual rate is. I buydown rate typically includes the borrower to bring in thousands of dollars to buy down the rate.
When you look all over the Internet you going to see that there is a huge range of what companies market as their interest rate. Keep in mind that the mortgage interest rates come from the same place for every bank across the country. Some companies may be more aggressive with that rate they are given, but it should be very unusual for one bank to be more than one half point higher than another bank with all things being equal.
The next thing you need to know is what kind of fees is the mortgage broker or bank going to charge you. You typically don't want to go with them first person you talked to, but rather talk to three or four different lenders to help you decide. Each lender should give you a good faith estimate of the proposal. Keep in mind though, this is only an estimate and it does not mean that they have to include everything that may change during the process.
The second thing you need to do is make sure that you know your credit scores. This will help you shop with confidence and be able to provide the needed information to each lender. Here's the best place that we have found that gives a complete and accurate credit report.
The next thing you need to discover is whether you want a fixed rate, or an adjustable-rate loan. Most people these days are opting for a fixed rate because rates are very favorable, but there are several situations where an adjustable rate makes more sense. It just depends on your situation. Make sure that you're working with someone who provides you with both options, and shows you the pros and cons of each.
Make sure you check and see if there is a prepayment penalty on this loan.
The most important step of getting a new mortgage is to make sure that you're working with someone who knows what they're talking about. It goes without saying that in any industry there are the people that are great at the job, and there are people that are clueless. Believe me, I have worked with both
About the Author:
Daniel Fullmer is a mortgage planner that loves to work with buyers and those who need to refinance. If you have questions, call Daniel at 208-465-6666 to get your questions answered. Make sure to visit our site us here top 10 fixed rate mortgages and our home page here top 10 fixed rate mortgages
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