How to shop for the best mortgage rate
Understanding the ins and outs of getting the best mortgage rate can save you tens of thousands of dollars over the life of your home loan. Here’s what you need to know about getting a good mortgage rate.
What is a mortgage rate?
Your mortgage rate is the amount of interest you pay on your home loan. It’s expressed in annual percentage rate (APR).
Mortgage rates are set through a combination of market factors. Lenders consider market conditions locally as well as nationally when quoting interest costs. Rates change on a regular basis, which can impact what you pay in the long run. It’s important to stay on top of the situation so you don’t end up paying more than you should.
Compare current mortgage rates
Getting the best mortgage rate starts with comparison shopping. Student Loan Hero’s mortgage tools can help you compare mortgage rates.
Realize, too, that the mortgage rate you end up with also depends on your personal situation. Your credit is the most important factor that influences whether or not you get the best possible rate. Improving your credit is an essential step in locking in a better rate.
Other factors that influence your mortgage rate include the size of your down payment, what type of mortgage you get (fixed-rate or ARM), and the length of your mortgage term.
Once you get an idea of what different companies offer, get a more complete quote from lenders based on your personal situation before moving forward with your mortgage.
On-demand mortgage rates
Once you have finished filling in the boxes, you can click “Get Rates” and see results from several lenders. You can view more details about the rate, or go to the lender’s website to apply.
It’s a good idea to compare rates from at least three lenders to get your best possible rates and save more money. According to the Consumer Financial Protection Bureau, you can save up to $3,500 in interest during the first five years of your loan. Over time, the savings can be even bigger.
Technology offers you the chance to get more quotes from a wider variety of lenders. With the help of our mortgage rate tool, you can get lenders to compete over you, and find the best possible rate for your situation.