Researching The Best Mortgage Rate
Are you in the market to refinance an existing mortgage? Are you about to purchase a new home and are interested in finding the best mortgage rate possible?
Shopping For The Best Rate Possible
Many leading mortgage and financial experts will tell individuals to thoroughly shop the entire mortgage rates market in order to identify the best one. However, many people simply do not know what this task fully entails. If you are able to find an extremely low rate mortgage then you could be saving yourself tens of thousands of dollars over the long term. It is very important to be diligent in your research and preparation of the right rate and loan for you.
A Mortgage Rate Example
To offer you an example of just how important it is to find a low rate mortgage, consider that securing a $300,000 mortgage over 30 years would likely yield a monthly payment of just over $1,500 at a rate of 4.5 percent. If on the other hand you secured a rate of 5.10 percent, such a rate would increase your total monthly loan payment to just over $1,600 per month. Stretched over 30 years that is over $40,000 in mortgage fees that you would be paying at 5.1 percent versus the lower 4.5 percentage rate. As you can clearly see in this example it is extremely important to make sure that your mortgage rate is the lowest that is can possibly be.
Your Credit Score
When searching for the best mortgage rate possible it is very important to find out what your current credit score is. You should run a credit check on yourself using Equifax or another credible credit rating agency that will give you a report that shows what your overall credit score is. Once you get the credit report you should print it out so that you can present it to prospective lenders yourself. This negates the need to have multiple creditors run the credit check themselves which will inundate your credit report with inquiries that can ultimately lower your score.
Narrowing The Selection Down
When you’re in the market for the best possible mortgage rate it is always a great idea to find a prospective lender that has an excellent service record. This will give you the peace of mind that comes with knowing they will be easy to deal with in the future. There is nothing worse than dealing with a long term lender with a poor service rating. If you want first hand reviews on the service rating of prospective lenders then ask your family and friends who they recommend. Once you are able to narrow down highly reputable mortgage lenders to two or three possible candidates then you will need to cross compare the rates of each.
Establish Your Rate & How Much You Should Borrow
When you’re searching out the best possible mortgage rate it is always an excellent idea to have established a maximum budget beforehand. Calculate how large of a mortgage you can afford and then diligently stick to that figure. You should also calculate what sort of rate you need. Don’t begin looking for a mortgage until you have established these two important figures beforehand. Doing so will make the mortgage rate search much less stressful than it needs to be.
When discussing mortgage options with a prospective lender make sure that you ask them to provide you with a variety of different available terms. Look over each offered set of terms closely to decide which loan option will make the most sense for you to pursue. Often times lenders will offer low or exceptional promotional rates that you will need to act fast on in order to secure them. Thus it is always a great idea to explore the lender’s full range of lending options.
Never Limit Your Search To Just One Lender
The worse thing that you can do when seeking out the best possible mortgage rate is to get lazy and only explore the available rates of one lender. Many experts state that you should consider at least 3 to 4 lenders before narrowing your choice down. Besides the mortgage itself many lenders offer much different option packages and mortgage related services. It is an excellent idea to cross compare them all in order to find the best one for you.