Lowest Rate Mortgage Shopping Gets Good Results

2007-03-08 10:33:40

( Financial )



Shopping for the lowest rate mortgage will probably consume much of your time as it entails a detailed comparison work among the lenders and the types of mortgage that you will get.

It may be easier for you to qualify for an adjustable rate mortgage that initially offers a low mortgage rate (which is intended to attract borrowers). But remember that the rate is adjusted yearly (or periodically, depending on the adjustment interval). The rate may go up when the national index rate increases.

Or, you may opt for a fixed rate mortgage when prevailing interest rates are low. If you are a low or moderate wage earner, the lowest rate loan to which you can qualify is usually the government-insured fixed-rate mortgage.

Most lenders offer the lowest rate mortgage to borrowers who have low credit risks. If you don’t have a good credit standing, you will have to do your research work and compare mortgage rates from lender to lender to find the lowest mortgage interest rates.

In your quest for the lowest rate mortgage, get as many mortgage quotes as possible. You may also need financial calculators to do your comparison shopping.

If you intend to buy a fixed-rate mortgage, you may now sort your list of quotes by rate and then points. You usually will find that low rate loans with low mortgage rates will have the most points. You can start the elimination process by deleting the loans with rates and points that are obviously higher than other loans on the list.

After you have narrowed down your choices, select the lowest rate mortgage from a reputable lender. And before you submit your application for a low rate loan, make sure that the lender can process and close your loan with the low mortgage rate during the lock-in period.


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