Purchasing a home is one of the most significant and life-changing investments you will ever make. However, before you buy a home, you will most likely need to obtain a home mortgage. Mortgages vary considerably by lender and program, so you will want to compare mortgage rates and lenders carefully. In order to get the best deal, consider the following tips:
1. Understand the different types of mortgage rates.
Not all mortgage rates behave the same. Fixed mortgage rates, for example, remain the same over the life of the loan. Adjustable rates, on the other hand, may increase or decrease after an initial period in which they stay the same. Because of the risk of future variability, adjustable rates tend to be lower than fixed rates initially.
2. Collect quotes from multiple lenders.
In addition to collecting rate quotes for different loan programs and rate types, collect rates from different lenders as well. The more options you have, the better your ultimate outcome will be.
3. Consider the impact of the loan’s other characteristics.
The interest rate isn’t the only factor to consider when comparing loans. For example, some loans may offer a lower interest rate only if you pay points at closing. Likewise, some loans with lower interest rates also include shorter terms, which means that your monthly payment will be higher.
4. Do research on the lenders you are considering.
As you compare different lenders, be sure to research their reputations by reading reviews from past customers. Eliminate any lenders with a history of poor customer service, security issues or other problems.
5. Look at the big picture.
To choose the best possible loan, consider each option in its entirety. For example, the loan with the lowest initial payment may not be the best choice if it comes from a lender who provides poor customer service.
At Starboard Financial, we offer a variety of mortgage programs to meet your specific needs. Contact us today to compare mortgage rates and find the loan that is best for you.