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Getting the Best Rates for Your Mortgage
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 will save you money in the long run.
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.
Conduction Your Own Research
Since 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.
Since rates change quickly, that great rate you find today might not be there tomorrow. Therefore, once you find the rate you're looking for, submit a loan application to 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 are "30-year" mortgages, 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
It's sometimes difficult to know if you're dealing with a broker or a mortgage company. Be sure and ask. Brokers do the research for you and arrange for the transaction - they are not the actual lenders. This can save a lot of time as you search for the best deal. However, they are not obligated to find you the best rate unless you enter into a contractual agreement to have the broker act as your agent.
A broker will have access to a wide array of mortgage lenders and rates, giving you a wider range of services from which to choose. They are often paid a fee in the form of additional closing costs, or points. Just as you shop for mortgage lenders, you should also shop around for a broker. Ask friends & associates who have refinanced or purchased recently if they can recommend someone. You need someone who has your best interests in mind and you'll want to find a broker who is flexible & knowledgeable about finance and loans.
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Amy
Meller
William Raveis Real Estate & Home Services
361 Boston Post Road
Sudbury, MA 01776
Phone: (978) 440-8686
Fax: (978) 759-0232
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