With the low interest rates on mortgages and with the Fed talking about increasing the interest rates soon again, this might be the time to lock in a low interest rate. Whether you are thinking about refinancing or purchasing a new home, here are some tips on how to get the best rate available.
Just like anything else, you need to shop for the best interest rate with a reputable lender.
There are two ways that you can do to get the best interest rate:
1) You can use LendingTree to search for the best interest rates, one of the largest mortgage networks online today.
The way how it works is you enter in basic information about your mortgage and the banks compete to provide you with the best rate. I personally never used lending tree however many financial bloggers seem to recommend it.
2) Bankrate.com is a great website to use for comparing interest rates with different lenders. This is the one that I use whenever we are looking to refinance or purchase a home and I have always found it great at finding and locking in the best interest rate with the least fees possible.
To make it simple, below are the steps that I use when shopping for a new mortgage/refinance loan:
Go to bankrate.com and check on either mortgage or refinance then choose the term loan (example: 30 year fixed)
Click on Add products (left) then enter the information necessary
The website will list a few lenders with the interest rate they offer
Pick the lender with the lowest interest rate + $0 in Fees in APR.
Check the reviews on the lender on google.com before contacting the lender
If the lender has good reviews then contact the lender via their website or by email or by phone to request a quote.
Make sure you request quotes with the monthly payment + fees from at least 2 lenders to compare before you make the final decision
Also, one thing that I would recommend before you start shopping for mortgage loan is to check your credit score. If you have a discover credit card, you can log into your account and check your credit score for free or you can check it here.