We are in process of purchasing our first house. Where find the lowers interest rate morgage?

Question

I want to couple of banks and they gave me a good faith estimate. Can you get better rates on line?

Answer 1

Please, please, please, don't be rate crazy. The interest rate is only one component of what makes a loan right for you.

We all sell to the same investors, the differences are, for the most point, going to be minimal. What will differ are the costs to lock a loan at that rate for a time frame sufficient to close the loan, how compently, promptly, and professionally the process is ( to minimize your stress), and that the loan you choose will be the one that will allow you to build equity comfortably at the most cost effective price.

The loan officer you choose is at least as important as the lender. This is the person responsible for educating you on all of your choices so that you may make informed decisions and acting as your advocate in the lending process to make it seamless for you.

Watch out for the circling loan sharks on Answers. Interview candidates referred to you by friends, associates, and relatives. Call the Branch Manager of your local title company and ask them for a couple of names of the top producers in your area. Talk to both bankers and brokers, there are capable and ethical loan officers in both of these professions, although the incidences of predatory lending are higher on broker originated loans. Make certain that each of them provides you with both a Good Faith Estimite of Closing Costs which details the costs involved in the loan, and a Truth In Lending Disclosure that confirms the costs expressed as an Annual Percentage Rate (APR). By comparing the various APR's you can determine which is the most cost effective loan and balance that against the various interest rates. The closer the APR is to the interest rate cited, the more cost effective the financing.

Good luck and congratulations on the purchase of your first home.

Answer 2

You can get better rates on-line. But you really don't want them. They are usually the kind of of rate that changes with time. So it might be %4 now but in 6 months or a year it can go to %9 or %10. Then you have a mortgage you can't afford and have to forclose. That is what is happening to many people right now.

A good way to find a good FIXED rate is to ask different banks about their first time buyers deals. There are also short weekend/evening class's at community colleges that will help you find the best rates and deals.

FYI: mortgage brokers usually charge for finding the best rates.

Answer 3

Nope, you can't get significantly better rates on line. Almost all conventional conforming 30 year fixed rate mortgage loans are going to be very competitive. Rates are based in one way or another on the market. As positive economic conditions may cause rates to rise (such as a increase in GDP) other negative conditions (such as increases in unemployment rate) cause interest rate to be lower. In order to stay in business lending institutions must stay very close. Rates can be "bought" down by paying points. Mortgage brokers will always cost (one way or another) more than going directly to a nationally known lender. It all boils down to customer service and it's a fact that you can't walk in to an on-line bank and demand a manager if something goes wrong. Take a look at the website below to get some disinterested 3rd party information. Just food for thought.
Good luck and congrats on your first home!

Answer 4

I just purchased my first house and I found going to a local lender was my best bet. So many mortgage brokers from places like Lending Tree are into following a strict system that almost feels scripted. In my case, they couldn't understand why I had the tax paperwork for a business and W2s (I had my own business and worked for someone else). They were number people, who entered your info into a computer that gave them their answers, and their best offer would have been around 12% or more. On the other hand, the local lender worked with me to find the best rate. He was part of a bank, but he also worked with other lenders and he valued my business. He got me 6.5%. I would research local lenders on the web and/or ask your real estate agent who they would suggest.

Answer 5

You will always get a better rate online, but it won't necessarily hold true to being the best deal at the end of the day. In my experience, the best method to get a good deal is to shop around a bit online and get some solid rates, then print them out and bring them to a local broker of lender and explain that you would rather work with someone local, but they need to be near the online rates. This way, you get the best of both worlds, the lowest rate around, and a local person to explain things and deal with. You can find some more tips and informative links at www.bestmortgageanswers.info

Answer 6

A mortgage broker can generally find lower rates than the local bank purely on the wholesale vs. retail angle. They can also shop your loan between several banks as banks adjust their rates to increase/ decrease business. A broker can also get you approved easier than the bank loan officers can basically because we know what we are doing and have to know the programs of hundreds of banks rather than just the programs of the bank they work for. Ask your friends that own homes who they used and give those people a call- chances are at least one of them is a broker and chances are they will give you the best overall deal.

Answer 7

Make sure you do all of your shopping in one day (rates change every day). Whether it is true or not, tell them that you have a signed purchase agreement and are ready to lock today. In most cases, you can't lock without a property address. Lenders will do a "bait and switch", if they know that you can't lock into an interest rate that day. Also, costs are very important. We all get our rates from the same place. It all depends on how much you are required to pay for that rate.

Answer 8

Check out the financial section of the Mail on Sunday. They have the best reputable rates available and from what banks / soceities.

Answer 9

I would go with the best deal at a bank you can find, you need someone to talk to and get help from with such a complicated transaction, and the people at your friendly bank can do that

Answer 10

Maybe. It's worth checking. Also contact a mortgage broker who represents many lenders. Ask any realtor for names.