How to Find Better Mortgage Rates

When you are shopping around for a house, one of the things you are looking for is a good deal. If you are like most people, you may get so consumed with finding your dream house that you forget about finding cheap mortgage. It is important that you realize that just one-percentage point difference rates can quickly result into a 10 percent difference in monthly mortgage payments. The interest you are going to pay when you borrow to refinance or buy a home is determined by the mortgage rate.

Are you paying too much?

Low mortgage rates can make homeownership cheaper for you. It does not make sense for you to buy a house when interest rates are lower because interest rates partly determine mortgage rates. So, it is important that you find brokers or banks that have the best mortgage rates. Let us look at some of the best sites to find current mortgage rates:

Bankrate.com

Bankrate displays all the information they have gathered through research about current mortgage rates on a simple table on their website. It also displays mortgage information provided to them by lenders for advertising purposes. These sponsored mortgage information are easy to spot and distinguish from the information that Bankrate has gathered through its own research.   The advertisers listing can be distinguished from other listings because it has a “Next” button that leads you to the website of the advertiser.

Consumerfinance.gov

The CFPB is a federal government agency and all the tools on their website are free. Consumerfinance only shows interest rates from actual lenders and updates the information every day. They gather data from a mix of large banks, regional banks, and credit unions. The interest rates shown on the websites can only partly help you determine mortgage rates. That means that you will still have to consider points, closing costs and mortgage insurance when you are shopping for mortgage rates.

Trulia.com

The website provides real time mortgage rates and allows you to compare multiple mortgages based on rates. You can also use the website to identify fees tied to mortgages and find a loan that suits you. You can open your own account on the website with the assurance that you will not get harassed by phone calls from mortgage lenders you are not interested in. The website also allows you to read customer reviews and this can help you find the best lender.

Lowestrates.com

On this website you can find the lowest rates from hundreds of lenders and identify the mortgage that suits you. They have comparison tools that are easy to use, which can help you save a lot of money and time. The website also gives you the opportunity to find the best insurance company and the credit card that is right for you. Lowestrates claims to have access to the best rates from the best lenders in the country.

Apart from bank interest rates, there are many other things that influence the pricing of mortgage. Some of these influences occur as a chain reaction to a change in bank interest rates. They include:

  1. The lenders own cost of borrowing funds
  2. Risks levels of the lending
  3. Individual design of the product
  4. Your lender’s cost of managing the risks within what is being borrowed
  5. Lender’s target level of profit when it is lending to you

Understanding these influences on mortgage rates can help you get the best deals in the market. If all of this seems difficult and complicated, you can always hire someone who knows about how mortgages work to guide you.

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