How To Find The Lowest Interest Rates

I hope you don't mind me sharing this article I found today. It's on finding the lowest interest rates when you are trying to get a mortgage or new home loan, or even a home loan refinance. I shared it with my daughter, and she agreed that it is pretty good. Hopefully it will help someone else that is trying to find a mortgage note that they can afford:


With the recent increase in foreclosure rates, there is confusion among homeowners as to whether their mortgage is at risk. The reality for many of these homeowners is that the responsibility to understand the terms and conditions of a mortgage belongs to the borrower. Before signing a contract that will affect your future, some basic knowledge of the mortgage you are committing to is important! If you are worried that you may be in trouble, read over your mortgage plan a few times and consult with a knowledgeable mortgage broker.

New and existing homeowners are often faced with various challenges when trying to gain access to home loans and favorable mortgage rates. There are several decisions to be made before you can choose the best home loan for you. As a borrower, it is beneficial to understand some basic issues associated with acquiring and maintaining home loans in order to obtain the best mortgage rates.

Interest rates vary with different types of mortgages. A fixed rate mortgage starts with the higher rates, but it offers no risk of rising rates and monthly payments. An adjustable rate mortgage (ARM) has a lower rate for a set period, after which it can rise a couple of percent each year. Balloon mortgages also offer low interest rates with the rest of the loan amount due at the end of 5 or 7 years, depending on the loan terms.

There is nothing like comparing rates to find the best deal. The easiest way is to request quotes from an online mortgage broker. By requesting quotes you don’t have to commit to any one lender, but still see their rates. Give as much information as possible to get an accurate quote and every discount that you qualify for.

Refinancing all of the loans secured by your home will ensure you qualify for the most competitive interest rate. Carrying a home equity line of credit or 2nd mortgage increases the level of risk you pose for a new lender and will raise your interest rate. By doing your homework and researching mortgage lenders you will be able to choose the best loan for your financial situation. Qualifying for an interest rate .25% better will save you thousands of dollars over the course of your mortgage.

When refinancing you always have the option of reducing your interest rate by paying the lender points. Before committing to paying this fee you should determine if the lower interest rate will allow you to recoup this expense. It can take as long as seven years to recoup the expense of paying points. You should perform a cost/savings analysis to determine if paying points is in your best interest.

In summary, follow these easy steps to make sure that you find the lowest mortgage loan interest rates:

1- Shop, shop, shop! You should shop around with every home loan lender that you can find. Don't stop with your local banks. Check every website out online that arranges home loan financing!

2- Bundle all of the loans that you have that are secured by your home. The more loans that lenders see that are attached to your property, the riskier it is for them to lend to you!

3- Determine the type of home loan that is right for you. By being flexible (such as being willing to take on a 15 year mortgage instead of a 30 year one), you can find the lowest mortgage interest rates available.

Good luck to you in financing your home.