Compare Mortgage Rates the smart way and come out on top.
Whether you are a consumer looking to purchase a home or a seasoned homeowner looking to refinance, there are a number of key factors to consider when you compare mortgage rates.
When you compare mortgage rates, you must first consider the integrity of the lender. Its best to compare mortgage rates of local banks, mortgage bankers, and also brokers. Typically brokers will have the absolute lowest bare bones rates, but they are also have the least control over the fulfillment of your transaction since they are required to outsource the underwriting and sometimes also the processing. On the other side of the spectrum, local banks as well as the “big banks” may have the most well-known brand name, however when you actually compare interest rates between them and the mortgage bankers, the actual banks usually have higher rates since all of their massive advertising costs big money which they pass on to you the consumer. At the end of the day, the reputable mortgage bankers are usually the best mix of low rates, control over the entire process, and overall integrity.
Compare Mortgage Rates – Tip#2: Consider the costs
When you compare mortgage rates among various lenders, be sure to consider what the total cost of the transaction is, regardless of whether the fees are required to be paid out of pocket or whether they are being rolled into the new loan. Ideally, you’ll be able to negotiate the lender to pay some or all of the closing costs while also providing a competitive interest rate. Always consider the “APR” as well as the actual note rate to get the complete picture of costs associated with the transaction.
When you compare mortgage rates, many would argue the most important factor is the experience and integrity of the loan officer.
Compare Mortgage Rates – Tip#3: Consider the Loan Officer
There is much more to a great rate than the pricing and rate itself. Due to today’s turbulent and uncertain mortgage market, there are a multitude of things that could go wrong and/or cause your mortgage process to go sideways. To position yourself for the best chance of an efficient mortgage process, only compare mortgage rates among reputable loan officers and lenders. That may seem obvious but its very easy to get sucked into an online ad flashing an ultra low interest rate. Whether that rate is legitimate or not, its important to consider the integrity of the source. The absolute lowest interest rates are usually advertised by bare bones broker shops or “refi houses” that don’t even employ actual loan officers, but instead have telemarketers and processors doing most of the handling of the loans. Those types of lenders may actually have the lowest rate but usually offer the highest fall-out rate when it comes to missing crucial aspects of the scenario that any experienced loan officer would catch early on and usually get resolved before it becomes an issue. In short, always consider the experience of the loan officer when you compare interest rates.
Author Joe Karns is sales and marketing leader dedicated to bringing his subscribers relevant and useful information. Want a free mortgage checkup? Check out Joe Karns at the following link for more a FREE refinance consultation and expert advice on finding the Best Refinance Lenders: Compare Mortgage Rates