5 Tips on Finding Low Mortgage Interest Rates

First and most important is to find a good honest reputable mortgage lender in your area who has been in business for some time and who is in good standing with the Better Business Bureau. You can get referrals for a mortgage lender or broker from a friend, neighbor or relative or conduct a search…

First and most important is to find a good honest reputable mortgage lender in your area who has been in business for some time and who is in good standing with the Better Business Bureau. You can get referrals for a mortgage lender or broker from a friend, neighbor or relative or conduct a search on the internet.

The second tip is to not believe all the “teaser” interest rates that you may see online or on TV commercials, that simply get you to call, then try to switch you. A good example is that I recently saw a TV advertising 2.75% 2.99% APR, for a “fixed Mortgage”. Being in the industry for as long as I have, I knew they were not talking about a 30 year fixed, but a 15 year fixed and many people do not realize that until they the prospective lender. Call 2 or 3 mortgage companies and ask for a home loan quote, using your scenario. (loan amount, home value, credit standing, etc).

A third important fact when looking for the “lowest” interest rate is to be sure and ask the company you are calling, what their “Total Closing Costs” are. There is still a lot of “tricks” used out there that do not tell you the whole story.Get their “total closing costs” and also a zero or low closing cost option. Compare the rates and closing costs to see how long it will take you to recoup your closing costs.

The fourth tip, when shopping for a home loan, is to make sure the loan officer or loan originator is experienced and will not try to get you to pay up front fees, without the proper determination of all factors. These factors include, trying to get a “ballpark 'idea of ​​what your home is worth, before, you spend the $ 450.00 average cost of an assessment. and whether it fits the guidelines of Fannie Mae or Freddie Mac (which is where most home loans are sold).

The fifth tip is to see if the company has any testimonials of satisfied customers and a local office where you can meet with the on officer if you need to come in and talk to them. It can be difficult when dealing with companies that are out of state. Also ask them how long the process will take and where they do the processing of your loan.

There are many other factors to consider when shopping for your next mortgage, but these few tips should help you.