Shopping Around for the Best Mortgage Rate- By: Miranda Marquit
When you are making a large purchase, like a home, it's important that you get the best possible deal on your loan. When you buy a home with a mortgage, you are promising to pay your lender back with interest. If you aren't careful with what you choose to do, you could end up with a higher interest rate that costs you tens of thousands of dollars over the life of your loan.
Call three or four lenders, or set up meetings with them, to discuss your financial situation, and the possibilities for mortgage loan terms.
Compare Apples to Apples
Make sure, as you compare mortgage options, that you are looking at the information for the same mortgage specifications. Decide, ahead of time, what you are looking for. Figure out an approximate mortgage amount, as well as a term length. You can't adequately compare a the terms on a 15-year mortgage to those on a 30-year mortgage. The terms for a variable rate mortgage will differ from those related to a fixed rate mortgage.
Make sure you are getting a straight across comparison. You want to choose the best option from amongst similar mortgages.
Let Lenders Know You are Shopping Around
As you talk to potential lenders, let them know you are in the shopping around phase. This indicates that you will be talking to their competitors. If you are a desirable customer, you might be able to get another quarter point knocked off the interest rate, or convince one of the lenders to waive the fees on your mortgage origination. Be up front, and even share the best deal you've received so far if you are asked.
It's possible to get a better mortgage if you shop around. Don't be afraid to find the best deal for you.
Article Source : http://www.realestateproarticles.com/
Author Resource : Miranda is a freelance writer and professional blogger. This post was written on behalf of Know Your Bank, a web site that helps consumers compare banks.